Consider the Government's Budget Balance

question 55

Multiple Choice

Consider the government's budget balance.Suppose G = 300 and the government's net tax revenue is 0.3Y.The government budget is in surplus only when Y is

• A)less than 350.
• B)less than 1000.
• C)greater than 1000.
• D)greater than 2500.
• E)greater than 3000.

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Definitions:

Self-relevant

Pertaining to information or stimuli that have personal significance to an individual, often influencing attention, perception, and memory processes.

Downward Counterfactual

An imagined alternative in which the outcome is worse than what actually happened.

Magical Thinking

Refers to the belief that one's thoughts or actions can influence events or outcomes in ways that defy conventional laws of cause and effect.

Misinformation Effect

The occurrence where an individual’s recollection of specific events deteriorates in accuracy due to information received after the event.