The Difference Between Tax Revenues and Government Expenditures That Would

question 42

Multiple Choice

The difference between tax revenues and government expenditures that would result if GDP were at its potential level is called the

• A) permanent income budget balance.
• B) net relative expenditure differential.
• C) Ricardian equivalence.
• D) balanced budget shortfall.
• E) structural deficit.

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Definitions:

Simple Event

In probability, a single outcome of an experiment or a situation where there is no combination of outcomes involved.

Event

An occurrence or outcome in a statistical experiment or study that can be distinctly identified.

Probability

A measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Relative Frequency

The ratio of the number of times a value occurs compared to the total number of observations.