Other Things Equal, an Increase in Taxes on Businesses Will

question 86

Multiple Choice

Other things equal, an increase in taxes on businesses will

• A) increase aggregate supply, decrease aggregate demand, and cause the price level to fall.
• B) increase aggregate supply, increase aggregate demand, and cause real GDP to rise.
• C) decrease aggregate supply, decrease aggregate demand, and cause real GDP to fall.
• D) decrease aggregate supply, increase aggregate demand, and cause the price level to rise.

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Definitions:

Connectives

Words or phrases in logic that connect propositions, such as "and," "or," "if...then."

Main Connective

In logic, the operator (such as AND, OR, NOT) that determines the overall value of a compound statement, linking its constituent parts together.

Atomic Statements

Expressions in logic that cannot be broken down into simpler statements and are used as the basic building blocks of logical expressions.

Main Connective

The principal operator in a compound logical expression, determining the overall outcome of the expression.