-With the Expenditures Programs and the Tax System Shown in the Above

question 42

Multiple Choice

-With the expenditures programs and the tax system shown in the above diagram:

• A) the public budget will be expansionary at all GDP levels above K,and contractionary at all GDP levels below K.
• B) the public budget will be a destabilizing force at all levels of GDP.
• C) deficits will be realized at income levels below K,and surpluses above K.
• D) deficits will be realized at income levels below H,and surpluses above H.

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Definitions:

Natural Resources

Materials or substances occurring in nature that can be used for economic gain, such as minerals, forests, water, and fertile land.

Timber

Timber that has been transformed into beams and planks, representing a phase in the manufacturing of wood.

Metal Ores

Minerals found in nature from which metals can be efficiently mined.

Minerals

Naturally occurring, inorganic substances with a definite chemical composition and crystalline structure.