Economists Who Are MOST Concerned with the Federal Government's Pursuit

question 126

Multiple Choice

Economists who are MOST concerned with the federal government's pursuit of fostering economic growth, stable prices, and full employment would agree with the _____ approach to federal finance.

• A) annually balanced budget
• B) cyclically balanced budget
• C) functional finance
• D) trade-balanced budget

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Definitions:

Import Units

A measure concerning the quantity of goods or services that a country brings in from other countries for domestic consumption or use.

Trade

The exchange of goods, services, or both between two or more parties, either within an economy or between economies.

Comparative Advantage

The ability of an individual, firm, or country to produce a particular good or service at a lower opportunity cost than others.

World Price

denotes the global market price of a good or service, which can affect domestic markets through imports and exports.