Short-Term Departures from Equilibrium May Be Caused by

question 28

Multiple Choice

Short-term departures from equilibrium may be caused by

• A) changes in spending decisions of households.
• B) changes in fiscal policy.
• C) changes in investment spending.
• D) changes in foreign demand for U.S. products.
• E) all of the above.

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Definitions:

Charitable Contributions

Contributions given to eligible entities that the donor might deduct from their taxes.

Adjusted Gross Income

The total gross income minus specific deductions, a crucial figure in the determination of a taxpayer’s liabilities and eligibility for various tax credits and deductions.

Carry Forward

A tax provision allowing a taxpayer to use any remaining tax credits or deductions in the following fiscal period.

Cash Contributions

Donations or gifts given in the form of physical money, such as banknotes or coins, to charitable organizations or entities.