When the Economy Slides into a Recession, Budget Lines

question 56

Multiple Choice

When the economy slides into a recession, budget lines

• A) pivot inward.
• B) pivot outward.
• C) shift inward.
• D) shift outward.

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Definitions:

Adjusted Gross Income

is an individual's total gross income minus specific deductions, used to determine tax liability.

Schedule A

A form used for itemizing deductions on a U.S. individual income tax return, including taxes paid, interest, gifts to charity, and other deductible expenses.

Property Tax

A rephrased definition: A levy on property that the owner is required to pay, usually collected by local governments, based on the property's value.

Sales Tax

A tax imposed by a government on the sale of goods and services.