Which of the Following Will Most Likely Occur in the United

question 124

Multiple Choice

Which of the following will most likely occur in the United States as the result of an unexpected rapid growth in real income in Canada and Mexico?

• A) an increase in aggregate demand and output in the short run
• B) an reduction in aggregate demand and output in the short run
• C) a reduction in the price level
• D) a decrease in the natural rate of unemployment in the United States

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Definitions:

Marginal Tax Rate

The tax rate paid on an additional dollar of income.

Taxable Personal Income

The portion of an individual's earnings that is subject to taxation, after accounting for deductions and exemptions.

Proprietary Income

Income generated from owning a business or holding exclusive rights to a product or service.

Government-Run Businesses

Enterprises or organizations that are owned and operated by the government rather than by private individuals or other businesses.