Refer to the graph above. 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 above. 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 above. 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 Above