To correct for inflation when calculating real debt, one must: O a. add the inflated debt and the nominal budget deficit. O b. c. assume that real debt is zero. multiply the percentage change of debt by the inflation rate. O d. deduct the amount of inflated debt from the nominal budget deficit.

Which statement is CORRECT? A) Automatic stabilizers indicate deliberate action by policy makers. O B) Discretionary fiscal policy shows automatic adjustments without any specific effort by policy makers. C) Discretionary fiscal policy indicates deliberate action by policy makers. Automatic stabilizers are risky tó use and sometimes can get the economy D) destabilized.

The national debt is a Select one: O A flow; flow O B. stock; stock O C. stock; flow OD. flow; stock variable. The federal government's budget deficit is a variable.

What would happen to output, employment, and the price level if the government increased spending on infrastructure, ceteris paribus? O Output would decrease, employment would decrease, and the price level would decrease O Output would decrease, employment would decrease, and the price level would increase O Output would decrease, employment would increase, and the price level would increase Output would increase, employment would increase, and the price level would decrease. O Output would increase, employment would increase, and the price level would increase Question 2(Multiple Choice Worth 5 points) (03.06 MC) Assume the price level is increasing, real GDP is decreasing, and the unemployment rate is increasing. Which event would explain this macroeconomic situation? OA positive supply shock OA negative supply shock A positive demand shock OA negative demand shock O insufficient data

D₂ Which of the following movements would be consistent with the government budget going from deficit to surplus and the simultaneous enactment of an investment tax credit? O a movement from Point A to Point C a movement from Point B to Point A O a movement from Point B to Point F a movement from Point C to Point B

The government will have flexibility in implementing countercyclical fiscal policy when the outstanding stock of government debt is relative to the size of GDP. O a. Total; large. O b. More; small. O c. Less; insignificant. O d. More; large. O e. Less; small.

Which of the following could NOT be expansionary fiscal policy tool? A )increasing money supply B) 3 ) increasing government expenditure O c) decreasing taxes O D) increasing transfer payments

According to Say's law which of the following statement is correct O a. The equilibrium of national income occurs where aggregate demand is equal to aggregate supply. b. Demand creates supply O c. None O d. Supply creates it's on demand O e. Full employment creates

< Previous Question 50- Next = = TT: D As of August 2022, the current US Inflation Rate is at 8.3% and the current US Unemployment Rate is at 3.7%. Based on the data, what might be a responsible fiscal policy action the US Government should take? Explain why. BiU A: +: J : O 00:34:33 F- Characters

Refer to the figure below to answer the questions that follow. Surplus Deficit GOP, GDP, Real domestic output, GDP GOP, a. The cyclically adjusted budget measures what the federal deficit or surplus would be if the economy reached the of GDP. level O normal O equilibrium O full-employment O actual b. If the cyclically adjusted budget is balanced, then Govemment expendtures. G. and tax nevenues,