In Figure 5-1 above, if the budget line BB0, the natural real GDP is $5300, and actual real GDP is $5000, then the cyclical budget surplus or deficit is the
A) horizontal distance between A and F.
B) vertical distance between F and D.
C) vertical distance A and F.
D) horizontal distance between B and D.
B
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Demand relates the amounts of a good purchased to
A) the amounts actually obtained. B) the gross domestic product. C) the quantity needed. D) the sacrifices required to obtain the good. E) the time required to produce the good.
Foreign exchange rate stability is important because a decline in the value of the domestic currency will ________ the inflation rate, and an increase in the value of the domestic currency makes domestic industries ________ competitive with competing foreign industries.
A) increase; more B) increase; less C) decrease; more D) decrease; less
Each Federal Reserve District has 9 directors. ____ are appointed by the member banks in the district and ____ are appointed by the Board of Governors of the Federal Reserve
a. 9; 0. b. 0; 9. c. 4; 5. d. 6; 3. e. 7; 2.
A government-imposed restriction on the quantity of a specific good that may be imported to and sold in the United States is called a
A. reverse-trade system. B. union trade system. C. quota system. D. tariff system.