As a General Rule, When an Income Tax Is Added

question 95

Multiple Choice

As a general rule, when an income tax is added to the basic macroeconomic model, what happens to the consumption schedule?

• A)It will shift downward.
• B)It will shift upward.
• C)It will become flatter.
• D)It will become steeper.

---

Definitions:

Beck

Aaron Beck, a psychiatrist known for developing Cognitive Therapy (CT), which later evolved into Cognitive Behavioral Therapy (CBT), focusing on identifying and changing negative thought patterns.

Cognitive Triad

A concept in cognitive therapy that refers to an individual's negative view of themselves, their future, and the world, contributing to depression.

Cognitive Errors

Faulty patterns of thinking that contribute to misinterpretations of reality or to emotional distress.

Beck

Refers to Aaron T. Beck, a psychiatrist known for his work in developing cognitive therapy, now known as cognitive-behavioral therapy (CBT).