The Gramm-Rudman-Hollings Acts of 1985
a. led to the largest budget deficits in the history of the United States
b. structured a one-quarter reduction in real discretionary spending over the period 1993–1998
c. required Congress to implement a pay-as-you-go plan
d. required Congress to cut every budgetary item by the same percentage if it could not reduce the deficit to zero through discretionary budget making
e. required Congress to pay for new spending by cutting old spending or raising taxes
D
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In an economy open to international trade ________
A) saving equals investment in equilibrium B) saving is the difference between net exports and investment C) saving equals investment as long as the economy has no exports D) saving equals investment as long as NX=0 E) none of the above
According to classical macroeconomic theory, if real GDP is below the full-employment level, then an increase in aggregate demand will result in which of the following changes in equilibrium?
a. Real GDP will rise, but the price level will remain constant. b. Real GDP and the price level will both rise. c. Real GDP will remain unchanged but the price level will rise. d. None of the above.