A Rule of Thumb Is That a 1% Increase in Output

question 17

Multiple Choice

A rule of thumb is that a 1% increase in output leads automatically to a reduction in the deficit of what percentage of GDP?

• A)0.5%
• B)1%
• C)1.5%
• D)2%

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Definitions:

Existing Business

Refers to a business that has already been set up and is currently in operation.

Goodwill

An intangible asset representing the value of a company's brand, customer relations, employee morale, and other factors not directly measurable but that contribute to earnings.

Purchase Price

The amount of money paid to acquire a product or service.

Net Value

The actual worth or value of an entity after subtracting liabilities from its assets, often reflecting the financial health and stability of a business or investment.