If Changes in GDP Are Not Totally Reflected in Changes

question 16

Multiple Choice

If changes in GDP are not totally reflected in changes in disposable income, then they must, to a significant degree, be absorbed by changes in

• A) tax collections, both automatic and discretionary.
• B) transfer payments.
• C) dividend payments.
• D) all of the above.
• E) none of the above.

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Definitions:

Society

A broad term defining a group of individuals living together in a more or less ordered community, sharing customs, laws, and organizations.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available matches precisely the amount desired by consumers at the current market rate.

Tax

Mandatory financial charge or another type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.