Figure 20-9 -In Figure 20-9, the C + I + G

question 60

Multiple Choice

Figure 20-9

-In Figure 20-9, the C + I + G + (X − IM) 1 line is flatter than the C + I + G + (X − IM) 0 line because the

• A)(X − I
• M)1 line indicates that net exports decline as GDP rises.
• B)(X − I
• M)1 line indicates that net exports rise as GDP rises.
• C)multiplier is greater for the (X − I
• M)1 line.
• D)(X − I
• M)1 line indicates that tariffs, quotas, and other trade barriers are keeping net exports below their full potential.

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Definitions:

Discovery

The process by which parties to a civil suit search for information relevant to the case.

FICA

The Federal Insurance Contributions Act, a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare.

Monthly Wage Base

The total amount of money earned by an employee in a month before deductions.

Collective Bargaining Agreement

A contract negotiated by an employer and a labor union that covers all issues related to employment.