If the Federal Budget Is Initially Balanced and Government Expenditures

question 105

Multiple Choice

If the federal budget is initially balanced and government expenditures remain constant, then an Jincrease in GDP will _________ tax revenues and create a budget _________.

• A) increase tax revenues and create a budget surplus.
• B) increase tax revenues and create a budget deficit.
• C) decrease tax revenues and create a budget surplus.
• D) decrease tax revenues and create a budget deficit.

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Definitions:

Global Economy

The interconnected marketplace of the world's economies, where goods, services, and labor are exchanged across international borders.

Command and Control

A military-inspired management style that emphasizes strict authority, obedience, and a clear chain of command in decision-making processes.

Leader

An individual who influences and guides others towards achieving collective goals, often possessing qualities such as vision, communication skills, and integrity.

Ethical Dilemma

A situation where a person has to choose between two or more morally acceptable or unacceptable actions, with no clear right or wrong answer.