Which of the Following Is True of an Increase in a Federal

question 70

Multiple Choice

Which of the following is true of an increase in a federal government budget surplus?

• A)When the surplus increases,revenues rise less than expenditures.
• B)The aggregate demand curve shifts rightward as a result of an increasing surplus.
• C)The unemployment rate falls as a result of an increasing surplus.
• D)Such an increase in the surplus might close an expansionary gap.
• E)The natural rate of unemployment increases as a result of an increasing surplus.

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Definitions:

Interpersonal Skills

Abilities used by a person to interact effectively with others, such as communication, empathy, and conflict resolution.

Employment

The condition of having paid work; a formal relationship between an employer and an employee.

Lateral Thinking

A problem-solving approach that involves looking at challenges from new and unconventional angles.

Creatively

In a manner that involves the use of imagination or original ideas to create something or solve problems.