When current government expenditures exceed current tax revenues and the economy is achieving full employment:
A. the cyclically adjusted budget has neither a deficit nor a surplus.
B. the cyclically adjusted budget has a deficit.
C. fiscal policy is contractionary.
D. the cyclically adjusted budget has a surplus.
B. the cyclically adjusted budget has a deficit.
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All of the following are deficit items in the balance of payments EXCEPT
A) purchases of foreign assets. B) imports of merchandise. C) foreign tourist expenditures. D) purchases of foreign currency.
A consumer maximizes utility when the marginal utilities of all goods
a. having positive money prices that are equal to zero b. are equal c. are maximized d. are equal to the opportunity costs for all goods that are considered necessities e. are exactly proportional to their market prices