An Equal Decrease in Government Purchases and Taxes Will Cause

question 41

Multiple Choice

An equal decrease in government purchases and taxes will cause:

• A)a decrease in real GDP.
• B)no change in real GDP.
• C)an increase in the budget surplus because real GDP increases.
• D)a reduction in the structural budget surplus.

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Definitions:

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A theory explaining that emotions can alter the perceived distance of an object, with negative emotions making objects seem further away.

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Wave

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