Author Question: An increase in the federal budget deficit: a. only occurs when there is a deficit in the balance of ... (Read 99 times)

sc00by25 · **on:** Jun 30, 2018

An increase in the federal budget deficit:
a. only occurs when there is a deficit in the balance of trade.
b. creates deflation.
c. decreases aggregate demand.
d. decreases the aggregate quantity demanded along a stationary aggregate demand curve.
e. raises the equilibrium level of output and employment.

Question 2

Diseconomies of scale cause the short-run marginal cost curve to slope upwards.
a. True
b. False
Indicate whether the statement is true or false