If higher inflation is expected in the future, then the

In order to eliminate unnecessary details and highlight the essential features of an economic model, an economist makes

a. critical assumptions b. macroeconomic assumptions c. normative assumptions d. positive assumptions e. simplifying assumptions

The budget deficit or surplus in any given year, adjusted for what it would have been if the economy were producing at potential GDP, is called

a. an automatic stabilizer. b. a discretionary fiscal policy. c. a standardized employment budget. d. a countercyclical employment budget.