Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 3 percent of real GDP to a surplus of 1 percent of real GDP. The government is engaging in a(n):

Government outlays consist of

a. all governmental purchases resulting from contracts with the private sector and foreign organizations b. government purchases, transfer payments, and interest on the national debt c. any purchase by an organization that is not trying to earn a profit d. government purchases and transfer payments minus the interest on the national debt e. total receipts from all organizations doing business with any level of government

Suppose a consumer is currently buying 5 goods so that utility is maximized. The price of one of the goods falls while the prices of the other 4 goods do not change. The consumer should

A. buy less of all goods being consumed to get to the optimal position. B. buy more of the good that has experienced the fall in price to get to the optimal position. C. buy more of all goods being consumed to get to the optimal position. D. buy more of all of the goods but the one that experiences the decline in price, to get to the optimal position.