Why Do Economists Think That the Structural Deficit Is a Good

question 162

Multiple Choice

Why do economists think that the structural deficit is a good measure of the direction of fiscal policy?

• A)Because it adjusts over the business cycle and reflects the fiscal stimulus of policy.
• B)Because it changes when policy changes, rather than when the economy changes.
• C)Because it changes when monetary policy changes, reflecting the interest rate cost of debt.
• D)Because it adjusts automatically, rather than requiring specific legislation.

Recognize the role of selective attention in cognitive development during middle childhood.

Discern the influence of environmental and genetic factors on the development of asthma.

Compare and contrast the contributions of Jean Piaget and Lev Vygotsky to understanding cognitive development.

Understand the importance of font selection in document design and its impact on readability and space utilization.

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or activity.

Output

The aggregate production of either goods or services by an organization, commercial sector, or the economy as a whole.

Diminishing Returns Effect

A principle in economics where increasing one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Variable Cost

Expenses that vary directly with the level of production output, such as raw materials, labor, and energy costs.