Large federal budget deficits:
a. can best be reduced by automatic stabilizers.
b. make it difficult to use discretionary fiscal policy.
c. in the mid to late 1980s were the result of a severe recession.
d. constitute only about 1 percent of GDP.
e. have little to do with the growth of the federal debt.
Question 2
For a monopsonist, the marginal factor cost is always:
a. equal to the wage rate.
b. less than the wage rate.
c. greater than the wage rate
d. the same as the labor supply.
e. the same as the labor demand.
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