Latest Questions & Answers

Q: Can you forecast next year’s deficit without knowing how fast GDP will

Can you forecast next year’s deficit without knowing how fast GDP will grow?

Q: When are larger deficits desirable?

When are larger deficits desirable?

Q: According to the World View on page 235, what prompted China’s

According to the World View on page 235, what prompted China’s fiscal stimulus in 2008? Had the government not intervened, what might have happened?

Q: Why are the AD shortfall and AD excess larger than their respective

Why are the AD shortfall and AD excess larger than their respective GDP gaps? Are they ever the same size as the GDP gap?

Q: Why did increasing inflation cause the British to rein in their policy

Why did increasing inflation cause the British to rein in their policy?

Q: Will the price level always rise when AD increases? Why or

Will the price level always rise when AD increases? Why or why not?

Q: What is the “ripple effect” in the News on page

What is the “ripple effect” in the News on page 216?

Q: How might construction industry job losses affect incomes in the clothing and

How might construction industry job losses affect incomes in the clothing and travel industries?

Q: Identify two groups that benefit from deflation and two that lose.

Identify two groups that benefit from deflation and two that lose.

Q: (a) Between 2000 and 2010, by what percentage did

(a) Between 2000 and 2010, by what percentage did federal spending increase in (i) in nominal terms? (ii) in real (inflation-adjusted terms)? Use the following values: 2000 - $698.1 billion; 2010 - $...