When a Government Reduces Its Deficits by Increasing Taxes,in the Short

question 8

Multiple Choice

When a government reduces its deficits by increasing taxes,in the short run,

• A)output returns to potential.
• B)output increases.
• C)interest rate is higher.
• D)IS curve shifts inward to the left.

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Definitions:

Labelling

The process of assigning a category or descriptor to individuals or groups, often leading to stereotyping and social stigmatization.

Inherently Deviant

A description of actions or behaviors that are fundamentally considered to violate societal norms and expectations.

Social Context

The environment of people, cultures, and institutions that surround and influence an individual or event, shaping its meaning and impact.

Public Order Crime

Refers to behavior that has been labeled criminal because it is contrary to shared norms, social values, and customs.