44. In the spring of 2021, Congress enacted a temporary child tax credit worth $300 per month per child to eligible families. Do you support or oppose proposals to make the child tax credit permanent? Use economics to explain your position.

41. A budget deficit occurs when government outlays are ________ its revenues. A budget surplus occurs when government outlays are __________its revenues.

A. greater than; equal to

B. less than; greater than

C. greater than; less than

D. equal to; greater than

40. Which of the following statements represents a possible outcome if the Fed intervenes following a price shock that increases inflationary expectations?

A. Contractionary policy would reduce the inflation rate and cause the RGDP gap to widen

B. Contractionary policy would reduce the inflation rate and cause the RGDP gap to shrink.

C. Expansionary policy would reduce the RGDP gap and cause the inflation rate to fall.

D. Expansionary policy would reduce the RGDP gap and cause the inflation rate to rise.

39. When policy is used to combat a negative RGDP gap,

A. the economy will experience a lower inflation rate than if the economy was permitted to self correct for the negative gap.

B. the economy will experience the same inflation rate as if the economy was permitted to self correct for the negative gap.

C. the economy will experience a higher inflation rate than if the economy was permitted to self correct for the negative gap.