When the government runs a deficit, which of the following is true?

A) T > TR - G
B) G > T + TR
C) G > TR - T
D) T < G + TR

Answer: D

Economics

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Refer to Figure 4-2. What area represents the increase in producer surplus when the market price rises from P1 to P2?

A) B + D B) A + B C) A + C + E D) C + E

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The natural rate is natural in the sense that macroeconomic policy

a. sees it all the time b. can ignore it c. can't do much about it d. is a natural reaction to unemployment e. has always recognized that some workers will be voluntarily unemployed

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