Author Question: The accepted philosophy on U.S. federal deficits prior to the Great Depression was that: a. the ... (Read 62 times)

bio_gurl · **on:** Jun 30, 2018

The accepted philosophy on U.S. federal deficits prior to the Great Depression was that:
a. the budget should be balanced cyclically.
b. a budget deficit does not matter as long as the economy is at full employment.
c. the budget should be annually balanced.
d. deficits dampen aggregate demand in the short run and reduce the federal debt.
e. spending decreases during expansions and increases during recessions.

Question 2

The best example of a frictionally unemployed worker is one who:
a. has been looking for work for 27 weeks or longer.
b. is laid off during a recessionary period in the economy.
c. is in the process of voluntarily switching jobs.
d. is discouraged and not actively seeking work.
e. cannot find a job that matches with his skills.