-Refer to the Figure Above to Answer This Question

question 100

Multiple Choice

-Refer to the figure above to answer this question.If government spending is G₁ and GDP is Y₁,why won't a reduction in government spending by the size of the budget deficit eliminate the deficit?

• A)Because GDP and NTR will decrease as a result of the decrease in government spending.
• B)Because government spending is a function of income.
• C)Because GDP will rise as a result of the decrease in government spending.
• D)Because NTR will rise as a result of the decrease in government spending.

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Definitions:

Understandable Terms

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Planning Stage

The phase in project management or intervention development where goals are set, strategies are outlined, and resources are identified and allocated for implementation.

Specify Action Steps

The process of clearly defining the specific actions or tasks required to achieve a goal or complete a project.