GDP, the tax rate, autonomous taxes, transfer payments and government spending and the level of output together determine:

Question

Quizplus · Accepted Answer

GDP, the tax rate, autonomous taxes, transfer payments, government spending, and the level of output are all factors that directly influence the government budget balance. These elements affect both the revenue (through taxes and other receipts) and the expenditure side of the government budget, thereby determining whether the government runs a surplus, deficit, or balanced budget.

GDP, the Tax Rate, Autonomous Taxes, Transfer Payments and Government