A Decrease in Real GDP Would Affect the U

question 24

Multiple Choice

A decrease in real GDP would affect the U.S. economy by:

• A) cutting tax revenues and raising government expenditures.
• B) cutting government expenditures and raising tax revenues.
• C) raising both tax revenues and government expenditures.
• D) cutting both government expenditures and tax revenues.

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Definitions:

Overnight Mail

Overnight mail is a shipping service that guarantees delivery of a package or letter to its destination by the next business day.

Loads of Laundry

Units or batches of clothing, linens, and other textiles laundered together in a single process.

Pages

Physical or digital sheets on which written or printed information is displayed; not a standard economic term.

Opportunity Cost

Opportunity cost is the cost of forgoing the next best alternative when making a decision to pursue a certain action.