How would budget deficit reduction through reduced government spending affect economic growth?
a. It would not affect economic growth because the budget deficit and economic growth are unrelated.
b. It would stimulate economic growth.
c. It would hinder economic growth.
d. It would not affect economic growth because the positive and negative effects of deficit reduction would cancel each other out.
e. It depends on which government programs are cut to achieve deficit reduction.
E
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Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent. In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent. Thus,
A) real GDP per person in Oz is growing at a faster rate than in Lilliput. B) real GDP per person in Lilliput is growing at a faster rate than in Oz. C) real GDP per person in Lilliput is growing at the same rate as in Oz. D) real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. E) We need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz.
A firm's demand for labor curve is also called its
A) marginal revenue product of labor curve. B) marginal benefit of labor curve. C) marginal factor cost of labor curve. D) marginal valuation curve.