If We Want to Know Whether Tax Revenues Are Sufficient

question 30

Multiple Choice

If we want to know whether tax revenues are sufficient to finance the discretionary part of government expenditure,which of the following measures should we analyze?

• A)the cyclically adjusted deficit/surplus
• B)the government's budget constraint
• C)the debt-to-GDP ratio
• D)the government's primary deficit/surplus
• E)the interest rate on government bonds compared to the growth rate of real GDP

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Definitions:

Roles

The expected behaviors, duties, and functions associated with a particular position or status within a group or society.

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.

Productivity

The measure of the effectiveness of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Quantitative Measure

An evaluation tool that uses numerical data to assess performance or outcomes.