In the short run,an increase in government spending that causes an increase in the budget deficit
A) affects the level of output but not its composition.
B) affects both the level and composition of output.
C) affects only the price level.
D) is neutral.
E) none of the above
Correct Answer:
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Q4: In the medium run,a tax cut that
Q5: The government budget constraint tells us that
Q6: The debt ratio will increase by more
Q7: When the economy is in a liquidity
Q8: The primary deficit is
A)government spending minus interest
Q10: If the government runs a primary deficit
Q11: The official measure of the deficit
A)always underestimates
Q12: The "official measure" of the deficit (the
Q13: All else equal,a rise in the debt-to-GDP
Q14: Since the early 1980s,debt ratios for the
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