An Equal Increase in Government Purchases and Taxes Will Cause

question 107

Multiple Choice

An equal increase in government purchases and taxes will cause

• A)an increase in real GDP.
• B)no change in real GDP.
• C)an increase in the budget surplus.
• D)a reduction in cyclically adjusted budget surplus.
• E)a reduction in interest rates.

---

Definitions:

Taste Buds

Sensory organs located on the tongue, allowing the perception of taste, including sweet, sour, salty, bitter, and umami.

Olfactory Cells

Specialized sensory neurons located in the olfactory epithelium of the nose, responsible for detecting odorous molecules and sending signals to the brain.

Mechanoreceptors

Sensory receptors that respond to mechanical pressure or distortion, involved in detecting touch, pressure, and sound.

Cutaneous Receptors

Sensory receptors located in the skin that respond to touch, pressure, temperature, and pain.