An Increase in the Federal Budget Deficit

question 51

Multiple Choice

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.

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Definitions:

Talcott Parsons

An influential American sociologist known for his development of action theory and for his contributions to the functionalist framework in sociology.

Primary Function

The main or most important purpose that an institution, structure, or system serves in society.

Integration

The process of bringing together diverse groups into a cohesive whole, often used in the context of social, cultural, or racial groups within a community or organization.

Generalization of Values

The process by which certain values become widely accepted and integrated into the social fabric, guiding norms and practices across diverse communities.