Refer to the above figure. As the real national income expands from Y2 to Y3,
A) tax revenues fall. B) a budget deficit occurs.
C) government transfers rise. D) a budget surplus occurs.
D
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Should autonomous consumption rise by one dollar, the effect of this on equilibrium income can be offset if net taxes are
A) raised by one dollar. B) lowered by one dollar. C) raised by c dollars. D) lowered by c dollars. E) raised by (1/c) dollars.
In a traditional economy, decisions about what to produce, how to produce, and who should get society's output are made by
a. the market b. the government c. repeating what was done in the past d. business firms e. nonprofit firms
A change in net taxes affects the equilibrium quantity of GDP demanded _____
Fill in the blank(s) with the appropriate word(s).
The ratio at which a country can exchange domestic products for imported products is called the terms of trade.
Answer the following statement true (T) or false (F)