Using Fiscal Policy, to Increase Real GDP and Employment the Government

question 203

Multiple Choice

Using fiscal policy, to increase real GDP and employment the government could ________ government expenditure on goods and services or ________ taxes.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a short period.

Turnover

A measure of the efficiency and effectiveness of a company's operations, often calculated as total revenues divided by total assets.

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, including cash, inventory, and equipment.

Turnover

In business, the total volume of sales or revenue made within a specified period. It can also refer to the rate at which employees leave a workforce and are replaced.