When there is a negative entry for unilateral transfers in the balance of payments, it means that
A) there must be an offsetting positive sign in the financial account.
B) U.S. residents gave more to foreign residents than foreign residents gave to U.S. residents.
C) U.S. residents purchased less services from foreign countries than foreign countries purchased from U.S. residents.
D) U.S. residents purchased more services from foreign countries than foreign countries purchased from U.S. residents.
Answer: B
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The social security tax, like any other tax, is shared by employers and employees based on the elasticities of demand and supply. If the wage elasticity of demand for labor is zero and the wage elasticity of supply for labor is positive:
a. most of the tax will be paid by the employer. b. most of the tax will be paid by the employee. c. all of the tax will be paid by the employer. d. all of the tax will be paid by the employee. e. the tax is split evenly between the employer and employee.
The inflationary gap is the
a. inflation rate that will occur from excess aggregate demand. b. budget deficit that caused the inflation to occur. c. distance between the equilibrium level of output and the full employment level of output. d. gap between expected and actual inflation.