A federal government deficit is said to exist in the event that ...

[mp14]

A federal government deficit is said to exist in the event that ________.
 
  A) federal outlays are less than federal revenues
  B) federal outlays are equal to federal revenues
  C) federal outlays are greater than federal revenues
  D) any of the above conditions exists

Question 2

Keynesians disagree with the new classical model because
 
  a. people are often irrational.
  b. wages are often negotiated through contracts, not auctions.
  c. people do not form expectations.
  d. wages are set to clear auction markets in both the short run and long run.
  e. all of the above

[kkenney]

Answer to Question 1

C

Answer to Question 2

B

[mp14]

Gracias!

[diana chang]

Thanks for the timely response, appreciate it