In an Effort to Balance the Federal Budget, an Increase

question 41

Multiple Choice

In an effort to balance the federal budget, an increase in Social Security taxes is passed.What is the most likely effect of this on equilibrium GDP?

• A)GDP will increase.
• B)GDP will decrease.
• C)GDP will not change but prices will rise.
• D)GDP will not change but employment will increase.

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Definitions:

Oral Contraceptives

Birth control pills that prevent pregnancy by inhibiting ovulation, taken orally.

Nursing Mothers

Women who are breastfeeding their infants, providing them with nutrients and antibodies through breast milk.

Contraceptive Method

A means or technique used to prevent pregnancy as a result of sexual intercourse.