If Fiscal Stimulus Creates a Large Budget ________, Then in the Long

question 41

Multiple Choice

If fiscal stimulus creates a large budget ________, then in the long run economic growth ________.

• A) surplus; decreases
• B) surplus; increases
• C) deficit; increases
• D) deficit; decreases
• E) None of the above answers is correct.

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Definitions:

Output Contracts

Agreements in which a seller agrees to sell all the output of a certain product to a particular buyer.

Requirements Contracts

Contracts where one party agrees to purchase all of its needs for a particular commodity from the other party for a certain period.

Common Law

A body of laws based on judicial decisions and customs, rather than statutory laws passed by a legislature.

Adequate Consideration

A fair and reasonable value exchanged in a contract, ensuring that all parties receive something of value.