An Increase in Tax Rates Is an Example of ________

question 96

Multiple Choice

An increase in tax rates is an example of ________ policy, while the government influencing banks to lend more to consumers is an example of ________ policy.

• A) GDP; GNP
• B) fiscal; monetary
• C) GNP; GDP
• D) monetary; fiscal
• E) none of these

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Definitions:

Capacity Utilization Rate

A measure of how much of a company's or industry's potential output is being used, often expressed as a percentage.

Unemployment Rate

The percentage of the labor force that is jobless and seeking employment, a key indicator of economic health.

Opportunity Cost

The loss incurred from not choosing the immediate best alternative in the course of decision-making.

Economic Resources

Inputs used in the production of goods and services, often categorized into labor, capital, land, and entrepreneurship.