4) If a government budget runs a deficit, then the tax cut will increase the equilibrium level of GDP; however, if the budget runs a surplus, then the tax cut will decrease the equilibrium level of GDP

4) If a government budget runs a deficit, then the tax cut will increase the equilibrium level of GDP; however, if the budget runs a surplus, then the tax cut will decrease the equilibrium level of GDP. 5. A car insurance is traded in the goods-and-services market. 6. The current profit shares of leading tobacco companies in the world is a major concern of macroeconomics. 7. When the structural deficit is $100 billion and the cyclical deficit is $50 billion, the deficit that remains at full employment is $150 billion. 8. Automatic stabilizers work during both economic recessions and economic expan- sions. 9. An increase in cyclical unemployment decreases the natural rate of unemployment. 10. When there is an increase in unanticipated inflation, the income is more likely dis- tributed from borrowers to lenders.