Author Question: In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the ... (Read 130 times)

Chelseaamend · **on:** Jun 29, 2018

In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget

A) deficit of 0.2 trillion.
B) deficit of 1.6 trillion.
C) surplus of 1.4 trillion.
D) surplus of 0.2 trillion.
E) surplus of 1.8 trillion.

Question 2

In the long run, the unemployment rate

A) is equal to the expected unemployment rate.
B) is zero.
C) can take on any value.
D) is equal to the natural unemployment rate.
E) must be equal to the expected inflation rate.