Some economists argue that the federal government should normally run a deficit at potential GDP, with the borrowed funds applied to

A) consumption goods.
B) investment goods.
C) social security benefits.
D) health care costs.

Answer: B

Economics

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A model's predictions are referred to as:

A) statistics. B) theories. C) hypotheses. D) empirical evidences.

Economics

Which of the following is true in the Stackelberg model?

A) The first firm produces less than its rival. B) The first firm produces more than its rival. C) Both firms produce the same quantity. D) Both firms have a reaction curve.

Economics