-Consider the Above Figure

question 267

Multiple Choice

-Consider the above figure. At a price level of 120

• A) total planned real expenditures exceed total planned production.
• B) total planned production exceeds total planned expenditures.
• C) prices would fall.
• D) inventories would begin to accumulate.

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Definitions:

Wage Base Limit

The maximum amount of income on which employees are required to pay certain taxes, such as social security taxes.

SUTA

The State Unemployment Tax Act, which mandates employers to pay state unemployment taxes to fund the unemployment compensation programs for workers in their state.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

Unemployment Taxes

Taxes paid by employers to fund the unemployment benefits, based on the number of employees and the history of layoffs.