Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A)Government purchases and taxes both increase real output.
• B)Government purchases and taxes both decrease real output.
• C)Government purchases increase, but taxes decrease, real output.
• D)Government purchases decrease, but taxes increase, real output.
• E)Neither government purchases nor taxes affect real output.

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Definitions:

Trailer Brake System

A braking mechanism specifically designed for trailers, which works in conjunction with the tow vehicle's brakes to ensure safe stopping power.

Tandem Drive

A configuration in which two separate drives work in conjunction to power a vehicle, often seen in heavy vehicles with dual rear axles.

ABS Configurations

Relevant to Anti-lock Braking Systems, referring to the different setups and components that prevent wheel lockup during braking.

Pneumatic ABS

Anti-lock Braking System (ABS) that uses compressed air to prevent the wheels from locking up during braking, especially in heavy vehicles like trucks and buses.