In a Closed Economy, What Does the Difference Between the Tax

question 151

Multiple Choice

In a closed economy, what does the difference between the tax revenue and government purchases, (T − G) , represent?

• A)National saving
• B)Investment
• C)Private saving
• D)Public saving

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Definitions:

Supply Curve

The supply curve is a graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell.

Inputs

Resources used in the production process of goods and services, including labor, capital, and materials.

Quantity Supplied

The quantity supplied refers to the amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Supply

The entirety of goods or services accessible for buying at a certain price level.