
-Refer to Figure 7.4. The diagram shows that:
A) at low levels of income the government budget will be in deficit.
B) at low levels of income the government budget will be in surplus.
C) at low levels of income government spending decline.
D) at low levels of income government spending increase.
Correct Answer:
Verified
Q24: Suppose, the autonomous government expenditure multiplier is
Q25: Suppose that the government increases its spending
Q26: The government budget balance (BB) is:
A) government
Q27: GDP, the tax rate, autonomous taxes, transfer
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