A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle, is termed:
a. budget finance

The level of GDP at which planned expenditure equals the amount of output produced is the

A) equilibrium output. B) potential output. C) long-run output. D) autonomous output.

An increase in labor productivity relates to

A) working harder over time. B) working longer over time. C) producing the same output with fewer labor hours. D) producing the same output with more labor hours.