Recall Application 1, "New Methods to Measure the Long-Term Fiscal

question 131

Multiple Choice

Recall Application 1, "New Methods to Measure the Long-Term Fiscal Imbalances for the United States," to answer the
following questions:
-According to the application, a way to eliminate the fiscal imbalance is to:

• A) scale back benefits.
• B) double payroll taxes.
• C) double income taxes.
• D) all of the above are correct.

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Definitions:

Economic Costs

Total expenses incurred in the production of goods and services, including both explicit and implicit costs.

Own Capital

The funds or assets owned by a business or individual, invested to start or operate a business.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs in response to market changes.

Inputs

Inputs are the resources such as labor, materials, and capital that are used in the production process to create goods and services.