The Ricardo-Barro effect of a government budget deficit refers to
A) a change in private savings supply.
B) a large crowding out effect from a government budget deficit.
C) a large crowding out effect from a government budget surplus.
D) the international impact of government deficits.
Question 2
When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is
A) falling over time.
B) equal to zero.
C) equal to the actual amount of unemployment.
D) greater than the level of deficient demand unemployment.
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