The budget is the amount of deficit or surplus that would exist if the natural rate of unemployment existed and adjustments were made for taxation (t) with existing government spending (g).

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.