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

---

Definitions:

Analyzing Ideas

The process of examining concepts or proposals in detail to understand their structure and evaluate their merit.

Mediator

A neutral individual who facilitates negotiation and agreement between disputing parties without providing legal judgment.

Critical Thinking Skill

The ability to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.

Inductive Reasoning

A method of reasoning in which the premises are viewed as supplying some evidence, but not full assurance, of the truth of the conclusion.