The Multiplier That Arises from Equal Increases in Government Spending

question 181

Multiple Choice

The multiplier that arises from equal increases in government spending and taxes is called the

• A) simple multiplier.
• B) tax multiplier.
• C) balanced budget multiplier.
• D) government spending multiplier.

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Definitions:

Variances

The difference between expected and actual performance, costs, or revenues, often analyzed in budgeting and accounting to manage and improve financial performance.

Direct Labour Costs

Expenses associated with the labor directly involved in the production of goods or services.

Sales Price Variance

The difference between the actual sales revenues received and the expected revenues at standard selling prices.

Master Products

Core products that represent the primary focus or business of a company, often driving its strategic direction.