Refer to the graph. Automatic stability in this economy could be enhanced by
A) changing the tax system so that the tax line has a steeper slope.
B) changing the tax system so that the tax line is shifted upward but parallel to its present position.
C) changing the government expenditures line so that it has a positive slope.
D) changing the tax system so that the tax line has a ﬂatter slope.

Question

Refer to the graph. Automatic stability in this economy could be enhanced by
A) changing the tax system so that the tax line has a steeper slope. 
B) changing the tax system so that the tax line is shifted upward but parallel to its present position. 
C) changing the government expenditures line so that it has a positive slope. 
D) changing the tax system so that the tax line has a ﬂatter slope.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. Automatic stability in this economy could be enhanced by
A) changing the tax system so that the tax line has a steeper slope. 
B) changing the tax system so that the tax line is shifted upward but parallel to its present position. 
C) changing the government expenditures line so that it has a positive slope. 
D) changing the tax system so that the tax line has a ﬂatter slope.

Refer to the Graph