Pat gives up a $40,000 per year job to stay at home and take care of the house. By so doing, Pat saves $15,000 in child care and house cleaning services which he now performs himself. The direct effect on GDP from Pat's decision is a decrease of

Governments run a balanced budget when

A) their debt is interest-free. B) transfer payments equal zero. C) revenues equal spending. D) revenues exceed spending.

Attempts by the government to reduce the rate of inflation often result in higher unemployment in the short run

a. True b. False Indicate whether the statement is true or false