Which of the Following Would Generally Be Considered to Be

question 7

Multiple Choice

Which of the following would generally be considered to be an indication of future economic problems for a City?

• A)A decreasing percentage of revenue raised by the City as a proportion of total appraised value of property.
• B)A decreasing percentage of revenue raised by the City as a proportion of median family income.
• C)An increasing population base.
• D)An increasing industrial base in a variety of industries.

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Definitions:

Inflationary Gap

A situation where aggregate demand in an economy outpaces aggregate supply, leading to inflation and a potential overheating of the economy.

Federal Budget Deficit

A federal budget deficit occurs when a government's expenditures exceed its revenues within a given fiscal year, leading to the need for borrowing.

Fiscal Policy Measures

Actions by the government that include implementing taxes and allocating funds to impact economic conditions.

Inflationary Gap

The difference between the actual level of GDP and the potential GDP under full employment, indicating excess demand in the economy.