If There Is Initially a Federal Budget Surplus and Government

question 56

Multiple Choice

If there is initially a federal budget surplus and government purchases and transfer payments both rise:

• A)AD increases and the budget surplus increases.
• B)AD increases and the budget surplus decreases.
• C)AD decreases and the budget surplus increases.
• D)AD decreases and the budget surplus decreases.
• E)there is an indeterminate effect on both AD and the budget surplus.

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Definitions:

POS Data

Information captured at the Point of Sale, tracking the details of transactions, customer behavior, and product performance.

Bullwhip Effect

The phenomenon where small variations in demand at the retail level cause progressively larger fluctuations in demand up the supply chain.

Information Sharing

The exchange of data, facts, ideas, and insights between individuals or organizations, aimed at improving understanding, efficiency, and collaborative efforts.

Fluctuation

Describes variations or changes in a metric or condition over time, such as price, demand, or supply levels.