You would expect less fluctuation in the percentage of government purchases to GDP of nonoil-based Arab economies relative to that of oil-based Arab economies. Why is that?
A) Oil-based Arab countries change their government expenditure plans dramatically each year.
B) Governments in nonoil-based Arab economies know how to manage resources better.
C) Government purchases in oil-based Arab economies are financed by receipts of oil revenues. Therefore, they fluctuate according to oil prices.
D) All of the above.
Correct Answer:
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Q1: Which of the following is not a
Q3: The sharp increase in the percentage of
Q4: Transfer payments include _
A) government aid to
Q5: Stabilization policy is used by the government
Q6: Fiscal policy is determined by the
A) the
Q7: Suppose real GDP is $12.1 trillion and
Q8: The central bank Reserve plays a larger
Q9: Timing stabilization policy is easier using monetary
Q10: According to economist Christopher Ruhm, during recessions
Q11: The government debt equals
A) the accumulation of
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