An Equal Increase in Government Purchases and Taxes Will Cause

question 35

Multiple Choice

An equal increase in government purchases and taxes will cause

• A)an increase in real GDP.
• B)no change in real GDP.
• C)an increase in the budget surplus.
• D)a reduction in cyclically adjusted budget surplus.

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Definitions:

Glucagon

A substance secreted by the pancreas that increases glucose levels in the blood by encouraging the liver to convert glycogen into glucose.

Progesterone

Progesterone is a hormone produced in the ovaries, placenta, and adrenal glands, playing key roles in the menstrual cycle and maintaining pregnancy.

Cortisol

A steroid hormone produced by the adrenal glands, involved in the body's stress response as well as metabolism and immune response regulation.

Metabolic Rate

The rate at which the body burns calories or energy, influencing how quickly or slowly one gains or loses weight.