In the short-run macro model, if the economy is in equilibrium, it must also be operating at full employment

Which of the following is the correct formula for determining the civilian unemployment rate?

a. [(the number of unemployed, working-age civilian seeking work)/(the number of civilian in the labor force)] x 100. b. C + I + G + (X-M). c. The total number of unemployed, working-age civilians seeking work. d. (The number of civilian in the labor force) x 100.

Widespread acceptance of the Keynesian theory of fiscal policy

a. caused most economists to reject the public choice view of budget deficits. b. relaxed the political pressure to balance the budget and, hence, paved the way for the persistent budget deficits of the last five decades. c. was based on the view that continual budget deficits would help stabilize the economy. d. increased the pressure for a constitutional amendment mandating that the federal government balance its budget.