In the short run, a surplus federal budget _____.
a. reduces national saving
b. boosts domestic saving
c. stimulates aggregate demand
d. promotes economic growth in the long run
e. increases the federal debt
Question 2
The unemployment rate measures the:
a. number of people in the labor force divided by the adult population.
b. percentage of people in the labor force who are unemployed.
c. percentage of people in an economy who have dropped out of the labor force.
d. number of people in the adult population who are looking for work.
e. number of people in the labor force who are not working.