The Data Below Provides the Actual and Structural Budget Deficits,as

question 50

Multiple Choice

The data below provides the Actual and Structural Budget Deficits,as a percentage of real GDP,for Canada between 1999 and 2010.Note that a negative value in the table indicates a budget surplus. TABLE 31-2 Refer to Table 31-2.Consider the year 2004.Based on the data in the table we can conclude that

• A)fiscal policy was expansionary in that year.
• B)real output was less than potential in that year.
• C)real output was equal to potential in that year.
• D)real output was greater than potential in that year.
• E)monetary policy was expansionary in that year.

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Definitions:

Pure Monopoly

A market structure where a single seller controls the entire market for a particular product or service, facing no competition.

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Peak-Load Pricing

A pricing strategy used to manage demand by varying prices at different times or days, especially during high-demand periods.

Two-Part Tariff

A pricing strategy that includes a fixed fee plus a variable charge for each unit of the product or service consumed.