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Refer to the Diagram

Question 320

Multiple Choice

  Refer to the diagram. The degree of built-in stability in the economy could be increased by A)  reducing government purchases so that the purchases line shifts downward but parallel to its present position. B)  changing the tax system so that the tax line is shifted downward but parallel to its present position. C)  changing the tax system so that the tax line has a greater slope. D)  altering the government expenditures line so that it has a positive slope. Refer to the diagram. The degree of built-in stability in the economy could be increased by


A) reducing government purchases so that the purchases line shifts downward but parallel to its present position.
B) changing the tax system so that the tax line is shifted downward but parallel to its present position.
C) changing the tax system so that the tax line has a greater slope.
D) altering the government expenditures line so that it has a positive slope.

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