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

question 66

Multiple Choice

If the full-employment deficit as a percentage of GDP is zero in one year, and 1 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:

Commission

A payment made to an employee or agent based on the value of the sale completed, often a percentage of the sale amount.

Principals

The original amount of money invested or loaned, not including interest or earnings.

Net Proceeds

The amount sent to the consignor as a result of consignment sales; gross proceeds minus charges.

Commission

A fee or percentage given to a salesperson, agent, or broker for facilitating or completing a sale or transaction.