Multiple Choice
Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the short run?
A) a recessionary gap.
B) an increase the price level and a reduction in real GDP.
C) an increase in the price level with no change in real GDP.
D) an increase in real GDP and an increase in the price level.
Correct Answer:
Verified
Correct Answer:
Verified
Q129: If the net public debt remains unchanged
Q130: Which of the following statements is TRUE
Q131: Net public debt is<br>A) all federal public
Q132: The total value of all outstanding federal
Q133: Which of the following is TRUE of
Q135: Other things being equal, during a period
Q136: A government balanced budget is<br>A) an excess
Q137: The gross public debt is the<br>A) amount
Q138: Gross public debt is<br>A) an excess of
Q139: Which of the following statements is CORRECT?<br>A)