The functional finance philosophy is based on the idea that balancing the federal budget is less important than using it to promote an economy operating at its potential

If society decides it wants more of one good and ________, then it has to give up some of another good and incur some opportunity costs

A) new resources are discovered B) all resources are fully utilized C) technology advances D) resources are underutilized

When the effects of a more expansionary macroeconomic policy are quickly and accurately anticipated, the policy will

a. increase inflation without reducing unemployment. b. increase unemployment while exerting little impact on inflation. c. decrease unemployment while exerting little impact on inflation. d. fail to exert a significant impact on either unemployment or inflation.