The accepted philosophy on U.S. federal deficits prior to the Great Depression was that:
a. the budget should be balanced cyclically
b. a budget deficit does not matter as long as the economy is at full employment.
c. the budget should be annually balanced.
d. deficits dampen aggregate demand in the short run and reduce the federal debt.
e. spending decreases during expansions and increases during recessions.
c
Economics
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Which of the following statements about profit maximizing firms in a competitive market is FALSE?
A) Firms earn no economic profit in the long run. B) Marginal revenue does not have to equal marginal cost. C) p - MC = 0. D) Price equals marginal revenue.
Economics
As of 2009, the U.S. federal deficit had reached nearly __________ of GDP
a. -3.0 percent b. -6.0 percent c. -12.0 percent d. -5.0 percent e. -7.0 percent
Economics