Author Question: A possible explanation for the persistence of the U.S. federal budget deficits is that: a. it is ... (Read 9 times)

Beheh · **on:** Jun 30, 2018

A possible explanation for the persistence of the U.S. federal budget deficits is that:
a. it is easier politically to increase government spending than to decrease taxes.
b. it is easier politically to decrease government spending than to decrease taxes.
c. it is easier politically to increase government spending than to increase taxes.
d. the economy naturally tends toward recessions.
e. the economy naturally tends toward full employment.

Question 2

When an economy is operating at full employment, _____.
a. structural unemployment does not exist
b. cyclical unemployment does not exist
c. the unemployment rate is zero
d. seasonal unemployment does not exist
e. the number of discouraged workers is zero