In the short run, a surplus federal budget _____.
a. reduces national saving
b. boosts domestic saving
c. stimulates aggregate demand
d. promotes economic growth in the long run
e. increases the federal debt
QUESTION 2The unemployment rate measures the:
a. number of people in the labor force divided by the adult population.
b. percentage of people in the labor force who are unemployed.
c. percentage of people in an economy who have dropped out of the labor force.
d. number of people in the adult population who are looking for work.
e. number of people in the labor force who are not working.
QUESTION 3A graph that shows the percentage of the families on one axis and the percentage of income on the other is called the:
a. Budget-distribution curve.
b. Income-consumption curve.
c. Lorenz curve.
d. Marx curve.
QUESTION 4In the short run, a federal budget deficit will most likely _____.
a. stimulate aggregate supply
b. reduce federal debt
c. boost economic growth
d. reduce national saving
e. boost domestic saving
QUESTION 5People who are not currently employed but say they want a job are counted as unemployed only if they:
a. have previously held a job.
b. are actively seeking employment.
c. are discouraged workers.
d. are between 16 and 65 years of age.
e. are willing to accept any offer of employment.
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