Other Things Constant, What Causes a Decrease in Real GDP

question 27

Multiple Choice

Other things constant, what causes a decrease in real GDP demanded?  

• A) an increase in government purchases 
• B) an increase in transfer payments 
• C) a decrease in government purchases 
• D) a decrease in net taxes

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Definitions:

Culture

Culture encompasses the beliefs, norms, values, and practices shared by a group of people, shaping their behavior and perceptions.

Ethos

The characteristic spirit of a culture, era, or community as manifested in its beliefs and aspirations; in rhetoric, the ethical appeal or credibility of the speaker.

Aesthetic Principles

The standards that guide judgments about what is considered beautiful, pleasing, or artful.

Crescive Norms

Unwritten, societal rules that are discovered through interaction rather than being formally taught.