-Refer to the above diagram.The level of government spending:
A) is equal to tax collections at each level of GDP.
B) is the same at all levels of GDP.
C) varies inversely with the level of GDP.
D) varies directly with the level of GDP.

Question

-Refer to the above diagram.The level of government spending:
A) is equal to tax collections at each level of GDP. 
B) is the same at all levels of GDP. 
C) varies inversely with the level of GDP. 
D) varies directly with the level of GDP.

Quizplus · Accepted Answer

Government spending is typically considered autonomous, meaning it does not change with the level of GDP, hence it remains the same at all levels of GDP.

-Refer to the Above Diagram