75.Reducing tax rates affects only aggregate supply.

True

False

74.Which statement(s) is/are TRUE?

I. The first priority for economists who favor a functional finance approach to the federal budget is to determine whether the budget is in surplus or deficit.

II. Slowly growing and fully employed economies do not have important public debt or deficit issues.

III. The government's primary job, according to those who favor functional finance, is to provide the public goods and services citizens want.

I and II only

II and III only

III only

I only

73.In the United States, Social Security and Medicare are examples of

intergenerationally balanced programs.

fiscally balanced programs.

pay-as-you-go programs.

fiscal sustainability.

72.Japan's large public debt is largely due to

corruption in government causing wasteful spending.

an increase in low-wage occupations that are not generating much income.

an aging population with many living on government pensions.

high rates of tax fraud causing lower tax revenues.

71.Which industry today arguably faces the most stringent and costly regulations?

trucking

satellite radio

drugs

airlines

64.Veterans' benefits are an example of discretionary spending.

True

False

63.Functional finance emphasizes economic growth and price level stability with full employment.

True

False

61.The wage rate changes that lead to equilibrium in the labor market are automatic stabilizers.

False

True

57.Times of recession cause the government to increase spending on transfer payments, which in turn can support economic recovery.

True

False