What Are the Effects of Running a High Budget Surplus,as

question 8

Multiple Choice

What are the effects of running a high budget surplus,as Japan does?

• A)Low interest rates,compared to those abroad
• B)Large capital inflows
• C)Overvaluation of the yen
• D)Large trade deficits

Understand the factors influencing economic growth and productive efficiency.

Recognize the impact of technological advancements and immigration on the expansion of a nation's production possibilities frontier.

Identify the effects of unemployment rates on economic operations relative to the production possibilities curve.

Distinguish between different states of employment (e.g., full employment, depression, recession) and their representations on economic models.

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Definitions:

Shale-Oil Deposits

Underground formations containing a type of unconventional oil that is extracted through hydraulic fracturing or other methods.

Geological Research

The scientific study of the Earth, including its composition, structure, processes, and history.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Tax Incentives

Financial benefits, such as reductions in taxes, provided by governments to encourage certain economic activities or investments.