Question

1. Which of the following would be considered a component of government expenditures?

Group of answer choices

a. More than one of these options is correct

b. Social security payments

c. Interest paid on outstanding bonds

d. Welfare payments

e. Police salaries

2. Which of the following statements is true?

Group of answer choices

a. The government deficit tends to rise and fall with the business cycle

b. When the government runs a surplus it means that its outlays are greater than its revenue

c. When the Fed buys and sells government bonds, it is dealing directly with the Treasury Department

d. The government deficit is the sum of all outstanding government bonds

e. Most of the bonds issued by the federal government are owned by foreign countries

3. Stagflation is when

Group of answer choices

a. unemployment and inflation are both increasing

b. unemployment and inflation are both decreasing

c. unemployment is decreasing as inflation is increasing

d. unemployment is increasing as inflation is decreasing

4. During the contraction phase of the business cycle

Group of answer choices

a. employment and output are both at a peak

b. employment and output are both rising

c. employment and output are both at their lowest

d. employment is falling and output is rising

e. employment and output are both falling

PLEASE ANSWQER ALL 4 MULTIPLE CHOICES LIKE CHEGG ALLOWS, DONT WANT TO MARK INCOMPLETE

Answer 1

1> a. More than one of these options is correct

Social security payment, law and order maintenance payment (police wage), dent payment and welfare payments are all part of government expenditures.

2> c. When the Fed buys and sells government bonds, it is dealing directly with the Treasury Department

Fed and treasury work hand-in-hand when Fed buys or sells bonds.

3> a. unemployment and inflation are both increasing

As per Phillips curve, unemployment and inflation do not increase simultaneously but in a stagflation, they do.

4> e. employment and output are both falling

In the contraction phase, economy is falling, thus output and employment both will decrease.