The structural deficit or surplus
a. shows the government where to make cuts in expenditures to follow the balanced budget requirement.
b. reveals the complicated structure underlying government spending and tax policy.
c. is the hypothetical deficit or surplus under current fiscal policies if the economy were operating near full employment.
d. includes all government budgets-federal, state, and local.
c
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Depository institutions are the most important source of credit to
A) mutual funds. B) large businesses. C) small businesses. D) state governments.
Jessica owns a company that makes pre-packaged sandwiches for convenience stores. The market price for a sandwich is $5 and Jessica is a price-taker. Her daily variable cost for making sandwiches is C(Q) = 2.5Q + (Q2/40) and her marginal cost is MC = 2.5 + (Q/20). What is the average cost of a sandwich at the quantity of sandwiches Jessica should be selling each day?
A. $1.25 B. $2.50 C. $3.75 D. $6.25
Which of the following programs would be opposed by philosopher John Rawls?
a. a negative income tax b. the Supplemental Security Income (SSI) program c. a tax plan creating a perfectly egalitarian income distribution d. Rawls would oppose all of the programs.
Economic theory suggests that the standard of living of American workers would rise if
a. the minimum wage were doubled. b. technological setbacks lowered output per worker hour. c. the amount of physical capital increased. d. automation was outlawed.