If a Tax Cut Increases Aggregate Demand More Than Aggregate

question 156

Multiple Choice

If a tax cut increases aggregate demand more than aggregate supply,real GDP ________ and the price level ________.

• A)increases;rises
• B)increases;falls
• C)decreases;rises
• D)decreases;falls
• E)increases;does not change

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Definitions:

Memory Retrieval

The process of recalling or bringing into consciousness information from memory storage.

Memory Encode

The process of converting information into a form that can be stored in the brain.

Flashbulb Memory

A vivid and detailed memory of an emotional or significant moment or event.

Emotionally Significant

Pertaining to events or information that have a deep emotional impact on an individual.