If the Time Path of Government Purchases Does Not Change

question 34

Multiple Choice

If the time path of government purchases does not change and the government cuts current labour income taxes, then:

• A)labour supply is shifted to the future.
• B)labour supply is shifted to the present.
• C)present GDP is reduced.
• D)future GDP is increased.

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Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary muscular activity, vision, speech, taste, hearing, thought, and memory.

Cerebral Hemispheres

The two halves of the brain, each controlling the opposite side of the body and responsible for different functions.

Myelin

Myelin is a fatty substance that forms a sheath around the axons of many neurons, speeding up the transmission of electrical signals in the nervous system.

Insulates

To cover, line, or separate with a material that stops or slows down heat, electricity, or sound from passing through.