When real GDP decreases and unemployment increases
A) tax revenue increases and social welfare spending decreases, swinging the cash budget toward surplus.
B) tax revenue decreases and social welfare spending increases, swinging the cash budget toward deficit.
C) tax revenue decreases and social welfare spending decreases, swinging the cash budget toward deficit.
D) tax revenue increases and social welfare spending increases, swinging the cash budget toward surplus.
Correct Answer:
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Q22: The right measure of fiscal policy is
A)
Q23: An increase in the full-employment deficit
A) shifts
Q24: An increase in the full-employment deficit
A) shifts
Q25: If the Federal Reserve tightens monetary policy
Q26: To turn the cash budget into the
Q28: When real GDP increases and unemployment decreases
A)
Q29: Each of the following are further adjustments
Q30: The real interest that government pays on
Q31: The real deficit (dr)
A) is equal to
Q32: Economists suggest that governments should adopt capital
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