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:

Painful Knee Surgery

A surgical procedure on the knee that is associated with significant discomfort or distress.

Vacillation

The inability to decide between different opinions or actions; indecision.

Incongruence

The difference between the perceived self and the ideal self, which can lead to feelings of discomfort and anxiety.

Incompatible Motivations

Incompatible motivations describe a psychological state where an individual has two or more desires or needs that conflict with each other, making it difficult to satisfy all simultaneously.