With the Expenditures Programs and the Tax System Shown in the Diagram

question 347

Multiple Choice

With the expenditures programs and the tax system shown in the diagram,

• A) the public budget will be expansionary at all GDP levels above K and contractionary at all GDP levels below K.
• B) the public budget will be a destabilizing force at all levels of GDP.
• C) deficits will occur at income levels below K, and surpluses above K.
• D) deficits will occur at income levels below H, and surpluses above H.

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Definitions:

Resource Input Stakeholders

Individuals or groups who provide essential resources or inputs needed for a project, business, or any initiative to succeed.

Product Output Stakeholders

Individuals or groups who are directly affected by the production and outcome of a product, including consumers, employees, investors, and suppliers.

Value Creation

What occurs when the result of a work task or activity makes a product or service worth more in terms of potential customer appeal than at the start.

Sustainable Business

A business approach that focuses on meeting the needs of the present without compromising the ability of future generations to meet their own needs.