The Government Increases Taxes

question 244

Multiple Choice

The government increases taxes. As a result, in the short run, real GDP_____________ and the price level_____________ .

• A) decreases; falls
• B) decreases; rises
• C) increases; rises
• D) increases; falls

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Definitions:

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for both systolic and diastolic pressures.

Conditional Distribution

A statistical term that describes the distribution of a variable contingent on the value(s) of one or more other variables.

Employees

Individuals who work for someone else in exchange for financial or other compensation.

Age Group

A classification based on the age of individuals, often used in surveys and studies to analyze behaviors, preferences, or health outcomes within specific populations.