Author Question: When analyzing the effects of the government budget deficit A) no distinction must be made ... (Read 43 times)

jman1234 · **on:** Jun 29, 2018

When analyzing the effects of the government budget deficit

A) no distinction must be made between an economy where full employment exists and one where substantial unemployment exists.
B) it is important to examine the effects of the reported capital budget and the reported operating budget separately.
C) there should be a comparison of the effect of the deficit to the effects of higher taxes needed to eliminate it.
D) the baseline budget should be used since it is the most accurate.

Question 2

According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP) because

A) it has too many resources.
B) it has a corrupt government.
C) it has a low rate of saving.
D) there are too many skilled workers in the country.