If There Is Initially a Federal Budget Surplus, and Government

question 110

Multiple Choice

If there is initially a federal budget surplus, and government purchases and taxes 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:

Strikes

Work stoppages caused by the mass refusal of employees to work, usually in protest against working conditions, pay levels, or other labor issues.

Win/Lose

A competitive situation or negotiation outcome where one party's gain is exactly balanced by another party's loss.

Advocate

A person who publicly supports or recommends a particular cause or policy.

Discussing

The act of talking about something with another person or a group of people to exchange ideas or opinions.