When revenues exceed expenditures
a. there is a budget surplus
b. there is a budget deficit
c. the government must create more money
d. the government is forced to issue more bonds to raise money
Ans: a. there is a budget surplus
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If the average productivity of Canadian firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see?
A) an increase in the value of the rupee relative to the dollar B) a decrease in the prices of Indian products C) a decrease in the quantity demanded of Indian products relative to Canadian products D) an increase in the quantity demanded of Indian products relative to Canadian products
Exhibit 10A-6 Aggregate demand and supply model
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Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 10A-6, the real GDP and price level (CPI) in long-run equilibrium will be:
A. $10 billion and 200. B. $4 billion and 150. C. $10 billion and 150. D. $10 billion and 100.