The brain drain refers to the effects of Dutch Disease when the infection spreads to other countries

Suppose initially the federal budget is balanced. The economy then enters a period of expansion. What is likely to happen to the federal budget?

A) It will remain balanced. B) It will show a deficit. C) It will automatically stabilize. D) It will show a surplus.

What is the historical relationship in the United States between the unemployment rate and recessions?

A) The relationship depends on whether or not the price level is also changing. B) The unemployment rate rises during a recession and turns negative during the subsequent recovery. C) The unemployment rate rises shortly before a recession begins and declines shortly before it ends. D) The unemployment rate rises soon after a recession has begun and starts to decline sometime after the recovery has started. E) There is no regular or systematic link that can be discerned from the data.