An increase in the federal budget deficit: a. only occurs when ...

[sc00by25]

An increase in the federal budget deficit:
 a. only occurs when there is a deficit in the balance of trade.
 b. creates deflation.
 c. decreases aggregate demand.
 d. decreases the aggregate quantity demanded along a stationary aggregate demand curve.
  e. raises the equilibrium level of output and employment.

Question 2

Diseconomies of scale cause the short-run marginal cost curve to slope upwards.
 a. True
  b. False
  Indicate whether the statement is true or false

[LegendaryAnswers]

Answer to Question 1

e

Answer to Question 2

False

[sc00by25]

TYSM

[mcarey591]

Excellent