Multiple Choice
Deficits may be desirable in the short run if they:
A) help to stabilize the economy when the economy falls below potential output.
B) increase savings necessary for future investment and growth.
C) increase savings necessary for future consumption and demand.
D) help to stabilize the economy when the economy is above potential output.
Correct Answer:
Verified
Correct Answer:
Verified
Q84: If an economy operates below potential income,
Q85: The cyclical surplus is $450 billion, potential
Q86: In order to calculate the real deficit,
Q87: During World War II, the economic recession
Q88: An economy's actual income is $800 billion,its
Q90: Holding the nominal deficit, nominal interest rate,
Q91: The real deficit depends on the:<br>A)level of
Q92: The portion of the budget deficit or
Q93: An economy has a government debt of
Q94: In the short-run framework, budget deficits should:<br>A)never