Refer to the above diagram.Automatic stability in this economy could be decreased by:
A)shifting the government expenditure line upward but parallel to its current position.
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 negative slope.
D)changing the tax system so that the tax line has a flatter slope.

Question

Refer to the above diagram.Automatic stability in this economy could be decreased by:
A)shifting the government expenditure line upward but parallel to its current position. 
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 negative slope. 
D)changing the tax system so that the tax line has a flatter slope.

Quizplus · Accepted Answer

The Answer of  Refer to the above diagram.Automatic stability in this economy could be decreased by:
A)shifting the government expenditure line upward but parallel to its current position. 
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 negative slope. 
D)changing the tax system so that the tax line has a flatter slope.

Refer to the Above Diagram