Figure 9-1 -In Figure 9-1

question 166

Multiple Choice

Figure 9-1

-In Figure 9-1,

• A)the 45-degree line represents all points where spending equals output.
• B)to the left of equilibrium GDP, inventories will fall.
• C)to the right of equilibrium GDP, inventories will rise.
• D)All of the above are correct.

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Definitions:

Tax Bracket

A range of incomes taxed at a particular rate, which forms part of a progressive taxation system where tax rates increase with income.

Cost-Cutting

The process of reducing expenses to improve profitability without compromising the core activities of an organization.

Depreciated Straight-Line

A method of allocating the cost of a tangible asset over its useful life, resulting in a consistent expense amount each period.

Pre-tax Salvage Value

The estimated value of an asset at the end of its useful life before taxes are taken into account.