The Government Increases Taxes

question 114

Multiple Choice

The government increases taxes. As a result, in the short run, real GDP ________ and the price level ________.

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

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Definitions:

Expressive Style

A manner of communication and presentation that is characterized by the vivid and effective expression of thoughts, feelings, and ideas.

Self-efficacy

An individual's belief in their innate ability to achieve goals.

Self-esteem

An individual's overall subjective emotional evaluation of their own worth or value.

Big Five

A model that categorizes human personality traits into five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.