In the medium 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) will not affect the composition of output but will affect the price level.
D) is neutral.
E) none of the above
Correct Answer:
Verified
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
Q15: The debt-ratio is the ratio of the
Q17: The deficit (as a fraction of GDP)is
Q18: A higher deficit in the current year
Q19: In 2010,the deficit-to-GDP ratio for the United
Q20: A major reason to be concerned about
Q21: Explain what can occur to cause an
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