If the government increased defense spending by 1 million and laid off enough Justice Department employees to decrease the Department of Justice budget by 1 million, which of the following is the likely net effect?
a. An increase in the budget deficit and transfer payments
b. An increase in the budget deficit and net taxes
c. An increase in the budget deficit and government spending
d. No change in the budget deficit because there is no net change in government spending
e. No change in the budget deficit because neither defense spending nor the Department of Justice is included in government spending
Question 2
Which of the following groups tends to have the highest unemployment rate in the United States?
a. African American teenagers
b. Workers, age 25 or older, who are college graduates
c. White women
d. Workers, 25 years of age or older, who are high school dropouts
e. White teenagers
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