Question

Question 9 (1 point)

The federal government

Question 9 options:

	runs a deficit when tax revenues are greater than government outlays
	runs a surplus when tax revenues are smaller than government purchases
	runs a surplus when tax revenues are greater than government outlays
	runs a surplus when tax revenues are smaller than government outlays

Question 10 (1 point)

If equilibrium RGDP is $12000 billion and full employment GDP is $10000 billion, the economy is in____and a(n)____would move the economy to full employment GDP

Question 10 options:

	expansion; increase in government expenditures
	expansion; decrease in government expenditures
	recession; increase in government expenditures
	recession; decrease in government expenditures

Question 11 (1 point)

If the government wants to increase employment, government purchases should be____and/or taxes should be____.

Question 11 options:

	increased; increased
	decreased; decreased
	decreased; increased
	increased; decreased

Question 12 (1 point)

During a recession, unemployment____, tax revenue____, and the budget deficit____.

Question 12 options:

	falls; rises; rises
	rises; rises; falls
	rises; falls; rises
	falls; falls; rises

Answer 1