Suppose the economy is in a recessionary gap. If government expenditures are currently $700 billion and tax revenues are currently $450 billion, the (total) budget deficit is _____________. Assume that economists estimate that if the economy were operating at full employment then government expenditures would be $600 billion and tax revenues would be $500 billion. The structural deficit is
_________________ and the cyclical deficit is _______________.
A) $1.15 trillion; $1.1 trillion; $100 billion
B) $400 billion; $300 billion; $100 billion
C) $400 billion; $100 billion; $300 billion
D) $250 billion; $100 billion; $150 billion
D
Economics
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When two variables have a positive correlation,
a. they tend to move in opposite directions. b. they tend to move in the same direction. c. one variable will move while the other remains constant. d. the variables' values are never negative.
Economics
An increase in corporate income taxes would reduce
A. national income. B. personal income. C. gross domestic product. D. net domestic product.
Economics