If Government Spending Falls and Taxes Rise, Both Will _____

question 28

Multiple Choice

If government spending falls and taxes rise, both will _____, but the effects of _____.

• A) lower equilibrium income; government spending will be larger
• B) lower equilibrium income; taxes will be larger
• C) raise equilibrium income; government spending will be larger
• D) raise equilibrium income; taxes will be larger

---

Definitions:

Integrity vs. Despair

A stage from Erik Erikson's psychosocial development theory occurring in late adulthood where the challenge is to look back on life with a sense of fulfillment or despair.

Erikson's Life Stage

Refers to the eight stages of human development theorized by psychologist Erik Erikson, emphasizing social interaction and conflicts that arise at different ages.

Butler's Life Review

A therapeutic technique that involves the reflecting on past experiences and significant life events to bring meaning, understanding, and closure to one’s life, especially in older adults.

Ambiguous Loss

A type of loss that lacks clarity and closure, often leaving individuals feeling unsure about how to grieve.