The cyclically adjusted budget deficit or surplus measures what the deficit or surplus would be if the economy was
A) in the recession phase of the business cycle.
B) in the expansion phase of the business cycle.
C) at potential GDP.
D) no longer in a business cycle.
C
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Double counting occurs when:
A) inputs are included in the calculation of the gross domestic product. B) household production is included in the calculation of the gross domestic product. C) depreciation is included in the calculation of the gross domestic product. D) unsold inventories are included in the calculation of the gross domestic product.
The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
As a result of this embargo, the exporting countries not participating in the embargo gain Area
A. a. B. b. C. c. D. (b + c).