In the figure above, if there is no Ricardo-Barro effect, the government has a budget ________ because the ________.
A) surplus of 0.2 trillion; SLF curve lies to the right of the PSLF curve.
B) deficit of 0.2 trillion; SLF curve lies to the right of the PSLF curve.
C) deficit of 0.4 trillion; SLF curve shows a smaller quantity of LF than the PSLF curve.
D) surplus of 0.4 trillion; SLF curve shows a larger quantity of LF than the PSLF curve.
E) surplus of -0.2 trillion; SLF curve lies to the right of the PSLF curve.
Question 2
If the economy is at full employment, then the inflation rate
A) is less than the expected inflation rate.
B) is equal to zero.
C) can be anywhere on a short-run Phillips curve.
D) is equal to the expected inflation rate.
E) exceeds the expected inflation rate.
front muscle figure
The Greenhouse Effect
Continuum of aggression. Based on an unpublished figure by Joanne DeSanto Iennaco.
Effect of extreme homoallostery
Growth of Government Spending, 1870–2009
Swimming Pool (Figure 3.1)