Which of the following are influences the budget has on potential GDP?
i.Government spending on infrastructure such as roads
ii.The collection of taxes
iii.Government spending on public goods to enhance productivity

Question

Quizplus · Accepted Answer

All three options - government spending on infrastructure, tax collection and spending on public goods to enhance productivity - can influence potential GDP. Government spending on infrastructure can increase efficiency and productivity, leading to higher potential GDP. Tax collection can affect the government's ability to finance spending on goods and services that boost potential GDP. Government spending on public goods such as education, research and development can enhance productivity and increase potential GDP.

Which of the Following Are Influences the Budget Has on Potential