Multiple Choice
Suppose that the federal budget is balanced when GDP is at potential GDP.If equilibrium GDP falls below potential
A) this will result in a current budget deficit.
B) the cyclically adjusted budget will be balanced.
C) government transfer payments will be rising and tax receipts will be falling.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: If real GDP exceeded potential real GDP
Q13: If Congress and the president pursue an
Q14: List the five categories of federal government
Q15: The cyclically adjusted budget is calculated at
Q16: Calculate the value of the government purchases
Q18: Expansionary fiscal policy<br>A)can be effective in the
Q19: As a percentage of GDP,federal expenditures _
Q20: The total value of U.S.Treasury bonds outstanding
Q21: An appropriate fiscal policy response when aggregate
Q22: Which of the following would be classified