If the Price Level Is Fixed, Then an Increase in Government

question 39

Multiple Choice

If the price level is fixed, then an increase in government spending will lead to

• A)a larger increase in nominal GDP than in real GDP.
• B)a smaller increase in nominal GDP than in real GDP.
• C)no increase in either nominal GDP or real GDP.
• D)an increase in nominal GDP by the same amount as an increase in real GDP.

Understand the concept of stereotypes and their accuracy.

Grasp the significance of salience in social perception and behavior.

Recognize the developmental aspects of racial awareness and prejudice in children.

Comprehend the theories explaining the origins of prejudiced attitudes, including scapegoat theory.

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Definitions:

Class Consciousness

A term referring to the awareness of one's social class and its implications in the capitalist system, often related to Marxist theory, which advocates for the working class's recognition of their collective economic interests.

Progressive Taxes

A taxation system where the tax rate increases as the taxable amount increases, generally considered more equitable as it places a heavier burden on those who have the ability to pay more.

Regressive Taxes

Taxes that take a larger percentage of income from low-income earners than from high-income earners, disproportionally burdening the former.

Feudalism

A medieval European social system in which land was held by nobles in exchange for military service, and vassals were in turn tenants of the nobles, while the peasants were obligated to live on their lord's land and give him homage, labor, and a share of the produce.