The potential for profit-increasing false advertising is greatest for which of the following goods?

Suppose initially the federal budget is balanced. The economy then enters a period of expansion. What is likely to happen to the federal budget?

A) It will remain balanced. B) It will show a deficit. C) It will automatically stabilize. D) It will show a surplus.

Increases in inflation redistribute resources from ________-spending to ________-spending households and hence, ________ short-run equilibrium output.

A. low; high; increase B. low; high; decrease C. high; low; increase D. high; low; decrease