How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government?
a. It increases the reported deficit.
b. It reduces the reported deficit.
c. It exerts no effect on the reported deficit.
d. It increases the deficit during an economic boom but reduces it during a recession.
b
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University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. Suppose that the federal government gives grants to these researchers equal to the their per-unit production externality. What is the relationship between the equilibrium quantity of university research and the
socially optimal quantity of university research produced? a. The equilibrium quantity is greater than the socially optimal quantity. b. They are equal. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
Which of the following is not a determinant of the long-run level of real GDP?
a. the price level. b. the amount of capital used by firms. c. available stock of human capital. d. available technology