If the Full-Employment Surplus as a Percentage of GDP Is

question 117

Multiple Choice

If the full-employment surplus as a percentage of GDP is zero in one year, and 2 percent of GDP the next year, it can be concluded that:

• A)fiscal policy is expansionary.
• B)fiscal policy is contractionary.
• C)the federal government is borrowing money.
• D)the federal government is lending money.

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Definitions:

Diffusion

The movement of a substance from an area of high concentration to an area of low concentration.

Drainage

The removal of water or liquid from a place or object, often using pipes or channels.

Phenylketonuria (PKU)

A genetically inherited disorder in which the body cannot properly metabolize the nutrient phenylalanine, resulting in the buildup of phenylketones in the blood and their presence in the urine. The accumulation of phenylketones results in mental retardation.

Albinism

A genetic condition characterized by a lack of melanin pigment, resulting in little or no color in the skin, hair, and eyes.