If Net Taxes Increase and Government Purchases Decrease

question 20

Multiple Choice

If net taxes increase and government purchases decrease,

• A)the price level will rise
• B)the money supply must increase
• C)the aggregate demand will shift rightward
• D)output and employment will fall
• E)there will be a federal budget deficit

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Definitions:

TAT

Thematic Apperception Test, a projective psychological test that involves creating stories about ambiguous scenes and images, used to uncover a person's underlying thoughts, motives, and feelings.

Achievement Motivation

A drive within individuals to set and accomplish goals, often fueled by a desire for success and recognition.

Achievement Situations

Contexts or scenarios in which an individual's performance is measured and evaluated against a standard or against others.

Motive for Success

Refers to the drive or desire within individuals to achieve success and accomplish their goals.