By Itself,a Reduction in the Price of Large Tractors Imported

question 56

Multiple Choice

By itself,a reduction in the price of large tractors imported into the United States from Russia

• A)decreases the GDP deflator and increases the consumer price index.
• B)increases the GDP deflator but leaves the consumer price index unchanged.
• C)increases both the GDP deflator and the consumer price index.
• D)leaves both the GDP deflator and the consumer price index unchanged.

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Definitions:

Social Security Tax

A payroll tax collected to fund the Social Security program, which provides retirement, disability, and survivorship benefits to eligible Americans.

Government Role

The involvement and responsibilities assumed by a government in regulating and guiding the economy, protecting citizens, and providing public services.

Federal Tax Revenue

The income received by the federal government from taxes imposed on individuals, corporations, and other entities, used to fund public goods and services.

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.