If There Is Initially a Federal Budget Surplus, and Taxes

question 87

Multiple Choice

If there is initially a federal budget surplus, and taxes rise, while transfer payments fall:

• 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 deficit.

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Definitions:

Behavioral Competency

A set of behaviors or actions that contribute to successful performance in the workplace or a specific role.

Constructive Dismissal

A situation where an employee resigns due to the employer's conduct, which fundamentally breaches the employment contract.

Local Human Capital

The collective skills, knowledge, and experience possessed by individuals within a local population, contributing to its economic development.

Structural Capital

The knowledge, processes, and intellectual property that remain within an organization when its employees have gone home for the day.