The economy's self-correcting mechanism always tends to push the unemployment rate back toward a specific rate of unemployment called

In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve

Given these curves, there is a government budget ________ and therefore the real interest rate is ________ than it would be otherwise. A) deficit; lower B) surplus; lower C) deficit; higher D) surplus; higher E) deficit; not different

When there are large federal budget deficits, the trade deficit tends to shrink

a. True b. False Indicate whether the statement is true or false