Which of the Following Is a Transfer Payment

question 58

Multiple Choice

Which of the following is a transfer payment?

• A) The federal government's budget deficit
• B) Unemployment compensation payments
• C) Military spending
• D) Wages of government employees
• E) The excise tax on gasoline.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Aggregate Supply

The aggregate amount of products and services created in an economy at a specific price level during a particular time frame.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or service, resulting in increased prices and reduced quantity.

Prices

The amount of money required to purchase a good, service, or asset, often influenced by supply and demand.