The U.S. debt problem is caused by the government only; individuals don't go into debt

A market demand curve reflects the

A) marginal social benefits of consuming a product. B) sum of private and social benefits of consuming a product. C) marginal private benefits of consuming a product. D) external benefits of consuming a product.

Suppose the economy is producing below the natural rate of output and the government is suffering from large budget deficits. To deal with the deficit problem, suppose the government takes a policy action to reduce the size of the deficits

This policy action will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run, everything else held constant. A) an increase; an increase B) a decrease; a decrease C) a decrease; an increase D) an increase; a decrease