The Balanced Budget Multiplier Is Always Equal to 1

question 47

True/False

The balanced budget multiplier is always equal to 1.

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Definitions:

Gross Profit

Income from sales or services minus the cost of goods sold; it measures how efficiently a company uses labor and supplies in production.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor, used to determine gross profit.

Operating Expenses

Expenses incurred in the normal operation of a business, including costs such as rent, utilities, and payroll, that do not directly relate to the production of goods or services.

Profit Center

A profit center is a branch or division of a company that is directly responsible for generating its own revenue and profit.