Refer to the above diagram. Assume that G and T2 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget deficit.
B. actual budget deficit.
C. cyclically adjusted budget surplus.
D. actual budget surplus.
Answer: B
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The above table gives assets and deposits for a (small) bank. The bank's reserves are equal to
A) $20. B) $30. C) $600. D) $630. E) $620.
Many states use container redemption programs to encourage reuse of glass bottles and other recyclable containers
Suppose a state has a current redemption program that imposes a 10-cent per container fee, and then the state increases the fee to 15 cents per container. What is the expected impact of this change on the optimal quantity of unredeemed (scrapped) containers? A) Optimal quantity increases B) Optimal quantity decreases C) Optimal quantity remains unchanged D) We cannot determine the outcome of this policy change without having more information