If Government Adhered Strictly to an Annually Balanced Budget,then the Government's

question 51

Multiple Choice

If government adhered strictly to an annually balanced budget,then the government's budget would:

• A)raise real output during recessions and lower it during booms
• B)tend to destabilize the economy
• C)have no impact upon real output and employment
• D)tend to stabilize the economy
• E)always cause inflation

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Definitions:

Group Profit

is the total earnings of a conglomerate, calculated after all expenses and taxes, resulting from the operations of all its subsidiaries.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Non-controlling Interest Share

The portion of equity interest in a subsidiary not owned by the parent company, reflecting the minority shareholders' stake in the consolidated entity.

Profit for the Period

The net income earned by a company over a specific period, reflecting the company's profitability.