If Tax Rates Are Raised to Avoid a Deficit During

question 5

Multiple Choice

If tax rates are raised to avoid a deficit during a recession,then

• A)real GDP and deadweight loss from taxes will rise.
• B)real GDP will rise and deadweight loss from taxes will fall.
• C)real GDP will fall and deadweight loss from taxes will rise.
• D)real GDP and deadweight loss from taxes will fall.

---

Definitions:

Conformity Pressures

Social influences that encourage individuals to match the attitudes, beliefs, or behaviors of a group.

Brain Tissue

Composed of neurons and glial cells, it constitutes the physical substance of the brain, enabling mental and neural functions.

Big Five Traits

A model outlining five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Thickness

The dimension between two surfaces of an object, often referring to how dense or wide it is in comparison to its length or height.