Keynes believed that contractionary fiscal policy could help to slow down increases in unemployment.

Suppose a firm is considering locating a manufacturing facility in a poorer country where wage rates are much lower than in the United States

Why would social capital be a factor in their decision to relocate? Explain in terms of the impact that a lack of social capital may have on the marginal revenue product

The structural deficit is defined as

a. that part of the deficit that is so hard to remove that it is never reduced. b. the portion of the budget deficit that occurs because the economy is not at full employment. c. the hypothetical deficit the economy would have under current fiscal policies if the economy were operating near full employment. d. the actual budget deficit that exists in the economy.