-Economic data for a mythical economy in the years 2006- 2010 are summarised in the figure above. Assume that the spending formulas and tax schedules are identical for all years. When the economy is above full employment, the government has a

Question

Quizplus · Accepted Answer

When the economy is above full employment, tax revenues typically increase due to higher incomes, while government spending may not increase at the same rate, leading to a budget surplus.

-Economic Data for a Mythical Economy in the Years 2006-