Scenario 26-1

question 120

Multiple Choice

Scenario 26-1.Assume the following information for an imaginary,closed economy.
GDP = $110,000;consumption = $70,000;private saving = $8,000;national
saving = $12,000.
-Refer to Scenario 26-1.This economy's government is running a

• A) budget surplus of $4,000.
• B) budget surplus of $8,000.
• C) budget deficit of $4,000.
• D) budget deficit of $8,000.

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Definitions:

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others.

Serial Position Effect

is a psychological phenomenon where a person is more likely to remember the first and last items in a series better than those in the middle.

Persuasive Argument

The use of logical reasoning, evidence, and eloquence to convince others to adopt a certain viewpoint or course of action.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior.