Higher Productivity Growth Will Affect the Deficit By

question 11

Multiple Choice

Higher productivity growth will affect the deficit by:

• A) increasing budget outlays, hence increasing the deficit, ceteris paribus.
• B) increasing the tax base, hence decreasing the deficit, ceteris paribus.
• C) increasing output less than the increase in social programs, thereby decreasing the debt.
• D) both a and b, but not c

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Definitions:

Initial Public Offerings

The first sale of a company's shares to the public, marking a private company's transition to a public company.

Underwriter

A professional or company that evaluates and assumes the risk of another party's venture, typically in the financial industry, such as insurance or securities.

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.

Entrepreneur's Creativity

The capacity of an entrepreneur to generate innovative ideas, envision new products, or find unique solutions to problems.