Government Purchases (G) and Tax Revenues (T) OH J K L GDP Refer to the diagram. The degree of built-in stability in the economy could be increased by Multiple Choice changing the tax system so that the tax line has a greater slope reducing government purchases so that the purchases line shifts downward but parallel to its present position. changing the tax system so that the tax line is shifted downward but parallel to its present position. altering the government expenditures line so that it has a positive slope.

Government Purchases (G) and Tax Revenues (T) OH J K L GDP Refer to the diagram. The degree of built-in stability in the economy could be increased by Multiple Choice changing the tax system so that the tax line has a greater slope reducing government purchases so that the purchases line shifts downward but parallel to its present position. changing the tax system so that the tax line is shifted downward but parallel to its present position. altering the government expenditures line so that it has a positive slope.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.4P

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