Which of the following statements is true?
a. Federal budget deficits became progressively smaller during the 1990s and turned into a surplus by 1998
b. Federal spending declined relative to GDP, while federal revenues rose relative to GDP during the 1980s.
c. Functional finance says that policy makers should be concerned less with the economy's potential output and more with balancing the budget annually.
d. A disadvantage of functional finance is that it increases the level of unemployment during recessions.
e. A disadvantage of annual financed budget is that it dampens swings in the business cycle without increasing the national debt.
a
You might also like to view...
The primary purpose of economic regulation of an industry is to
A) control the prices charged by the regulated industry. B) increase taxes across the board. C) reduce output. D) control hiring and firing within the industry.
In what way does this map serve as an abstraction?
Zoom out to the highest level. How does this affect the level of abstraction? When would each type of map be most useful? Generalize this argument by discussing the level of abstraction needed for alternative economic models.