Under what conditions will the official measure of the budget deficit be greater than, less than, or equal to the correct measure of the budget deficit
What will be an ideal response?
The official measure of the deficit is: iB + G - T.
The correct measure of the deficit is: rB + G - T.
The difference between the two measures equals ?B; that is, the official measure overstates the correct measure by that amount. The official measure will be greater when inflation is positive. The two measures will be equal when inflation is zero. And finally, the correct measure will be greater when inflation is negative.
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A country has 6,000 total efficiency units of labor. If the average efficiency of each worker in the economy doubles, the country will have ________ efficiency units of labor, everything else remaining unchanged
A) 48,500 B) 36,000 C) 300 D) 12,000
This Scenario addresses the economic concept of
A) financial intermediaries. B) deposit insurance. C) retained earnings. D) present value.