Consider the Following Three Items of Spending by the Government

question 75

Multiple Choice

Consider the following three items of spending by the government: (i) the federal government pays a $500 unemployment benefit to an unemployed person; (ii) the federal government makes a $2,000 salary payment to a Navy lieutenant; (iii) the city of Bozeman,Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman.Which of these payments contributes directly to government purchases in the national income accounts?

• A)only item (i)
• B)only item (ii)
• C)only items (i)and (ii)
• D)only items (ii)and (iii)

Recognize the impact of fiscal policies on the equilibrium price levels and outputs within an economy.

Identify the reasons for economic fluctuations and the role of government interventions in addressing these fluctuations.

Understand the concepts of stagflation, national debt, fiscal deficit, and how they affect the economy.

Interpret the effects of supply-side economics, including the impacts of tax cuts on aggregate supply.

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Definitions:

Delta-Wye Transformer

A type of transformer configuration that converts a delta-connected primary to a wye (star)-connected secondary or vice versa, facilitating power distribution between different systems.

Delta

A triangular electrical connection arrangement of three components or circuits.

Wye

A configuration for electrical circuits or networks where three branches converge at a single point, often used in three-phase systems.

Turns Ratio

Turns ratio refers to the ratio of the number of windings in the primary coil to the number of windings in the secondary coil of a transformer, affecting voltage level.