If Full-Employment Income and Equilibrium Income Are Equal for a Country,then

question 86

Multiple Choice

If full-employment income and equilibrium income are equal for a country,then a tax cut will result in

• A)Excess AD.
• B)Output exceeding desired expenditure.
• C)Leakages exceeding injections.
• D)Undesired inventory accumulation.

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Definitions:

Behavior Pattern

A repetitive and distinctive way of acting, thinking, or feeling that is characteristic of an individual across different situations.

Type A Behavior

Characterizes individuals who are highly competitive, self-critical, and strive towards goals without feeling a sense of joy in their efforts or accomplishments.

Radical Behaviorism

An approach in psychology that emphasizes the study of observable behavior and the role of the environment as a determinant of behavior, associated with B.F. Skinner.

Social Anxiety

A form of anxiety characterized by intense fear or discomfort in social situations, where one fears being judged or embarrassed.