To compare the net public debt of various countries, the debt has to be compared to
A) the country's real GDP. B) the country's current budget deficit or surplus.
C) the country's trade deficit. D) the country's national defense expenditure.
Question 2
Suppose the economy is initially operating at point A in the above figure. Which of the following statements is TRUE?
A) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run.
B) An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run.
C) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run.
D) none of the above
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