Expressing the U.S. federal budget deficit as a percentage of Gross Domestic Product (GDP)
A) results in inflation-adjusted revenue and expenditure numbers.
B) helps us understand the size of the deficit relative to the size of the economy.
C) was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large.
D) is only useful if the budget deficit is rising at an annual rate of more than 4 percent.
B
You might also like to view...
Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain
What will be an ideal response?
Figure 9-2
When an economy is experiencing the aggregate demand and supply conditions depicted in ,
a.
the actual rate of unemployment will exceed the natural rate of unemployment.
b.
buyers and sellers will have correctly anticipated the level of prices P1.
c.
the output y1 will not be sustainable in the future.
d.
all of the above are correct.