In the diagram of the budget line BB, a rise in government expenditure shifts BB ________, so that an unchanged GDP the budget deficit ________

A) downward, rises
B) downward, falls
C) downward, remains unchanged
D) upward, rises
E) upward, falls

A

Economics

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The economy is at full employment when all unemployment is ________

A. structural B. cyclical C. structural and cyclical D. structural and frictional

Economics

Suppose all firms in a competitive market are currently in both short-run and long-run equilibrium. What impact will a lump sum tax have on each firm in the short run? in the long run?

What will be an ideal response?

Economics