The federal budget deficit acts as an automatic stabilizer because

How might a U.S. federal budget surplus affect the trade balance? (Assume exchange rates are stated in terms of foreign currency per U.S. dollar.)

Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2024 and in 2025 if the Federal Reserve does not use monetary policy. If the Fed wants to keep real GDP at its potential level in 2025, should it use expansionary or contractionary policy, and what should it do to the federal funds rate?

The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?

Using aggregate demand and aggregate supply, explain what happens in the short run if the Federal Reserve raises interest rates in the economy. Be sure to detail what happens to aggregate demand, the price level, the level of GDP, and unemployment. Assume that the economy is at full employment before the interest rate increase.

In the figure above, AD1, LRAS1 and SRAS1 denote AD, LRAS and SRAS in year 1, while AD2, LRAS2 and SRAS2 denote AD, LRAS and SRAS in year 2. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?  

Liquidity is defined as

If demand is elastic, total revenue is expected to increase following a price increase. 

Fill in the blank with the present subjunctive form of the verb provided: You read:  Les pido que (llegar) temprano hoy. You write in the blank:  lleguen   Te pido por favor que (pensar) _____________ lo que quieres para desayunar.   HINT:  ‘desayunar’ = to eat breakfast  

Part 4: Discussion QuestionsAnswer the following question based on the New Reading and an article from the book. Follow these guidelines;  >Give your opinion in 1 sentence.  >Support it with your own ideas. >Include a specific idea from the article in your own words. >Write at least 4 sentences.  In the New Reading, the article talks about using drones to deliver everyday things. In the book, we read about using drones to deliver medicine and other important items. In your opinion, should companies spend time and money researching drone delivery for both important and everyday items, or should they only research how to deliver important items, like medicine? Write your opinion. Give two reasons for your answer. Use ideas from the readings and your own thoughts.