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Author Question: If the government thinks the natural unemployment rate is 5, when it is really 6, then the ... (Read 15 times)

mydiamond

  • Hero Member
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  • Posts: 804
on: Jun 30, 2018
If the government thinks the natural unemployment rate is 5, when it is really 6, then the government will
 
  A) overestimate the actual deficit.
  B) underestimate the actual deficit.
  C) overestimate the cyclically adjusted deficit.
  D) underestimate the cyclically adjusted deficit.
  E) none of the above

Question 2

Which of the following would increase the cyclically adjusted deficit?
 
  A) an increase in income.
  B) a decrease in income.
  C) an increase in the primary deficit.
  D) a decrease in the primary deficit.
  E) none of the above


Viet Thy

  • Sr. Member
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  • Posts: 329
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


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