Surplus Is

question 12

Multiple Choice

Surplus is:

• A)the difference between the price at which a buyer or seller would be willing to trade and the actual price.
• B)the difference between the willingness to pay and the actual price paid.
• C)the difference between the willingness to sell and the actual price accepted.
• D)All of these are true.

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.

Economic Recession

A period of significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Economic Expansion

A phase in the business cycle where an economy experiences growth in its GDP, income, and employment, leading to increased prosperity.

Federal Budget Deficit

The shortfall when the federal government's expenditures exceed its revenues in a fiscal year.