List the three possible ways the government can make adjustments, and the three possible ways the private sector can make adjustments, to an increase in the government's budget deficit
What will be an ideal response?
Government adjustments:
1. increase taxes
2. decrease expenditures on goods and services
3. decrease expenditures on transfer programs
Private-sector adjustments:
1. increase private savings
2. decrease investment
3. increase trade deficit through a combination of increased imports and decreased exports
Economics
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In the above figure, what factor might have caused the shift in the short-run Phillips curve from SRPC1 to SRPC2?
What will be an ideal response?
Economics
A tariff on imported peanuts ________ the quantity of peanuts imported and ________ the domestic price of peanuts
A) decreases; decreases B) decreases; increases C) increases; lowers D) does not change; increases
Economics