Which of the following is not a legitimate reason for maintaining federal budget deficits?
a. Deficits boost domestic saving, which in the long run could promote economic growth.
b. Deficits help reduce the size and duration of recessions through automatic stabilizers.
c. Deficits are used to finance capital projects.
d. Public spending through deficit financing wins support from the voters.
e. A federal budget deficit stimulates aggregate demand.
Question 2
Jacqueline has a Ph.D. in economics. She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field. The type of unemployment she is experiencing is:
a. frictional unemployment.
b. structural unemployment.
c. seasonal unemployment.
d. cyclical unemployment.
e. underemployment.
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Sample budget spreadsheet form for first year of business.
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