Multiple Choice
In the medium run, a fiscal contraction that causes a decrease in the budget deficit:
A) affects the level of output but not its composition.
B) affects both the level and composition of output.
C) will not affect the composition of output but will affect the price level.
D) is neutral.
E) affects only the composition of output.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: The official measure of the deficit:<br>A) depends
Q13: The official measure of the deficit is
Q14: What is a haircut?<br>A) The private sector
Q15: Which of the following is common to
Q16: The primary deficit is represented by which
Q18: If the Ricardian equivalence proposition is correct,
Q19: A higher deficit in the current year
Q20: To reduce distortions in the economy, it
Q21: If the Ricardian equivalence proposition is correct,
Q22: If the government runs a primary deficit