Compare the Effect on the Price Level and Real GDP

question 162

Multiple Choice

Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect.Compared to no supply-side effect,including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________.

• A)less; less
• B)less; more
• C)more; less
• D)more; more

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Definitions:

Excitement

A state of heightened emotional arousal that can be positive or negative, often triggered by anticipation or activity.

Final Phase

The last stage or part of a process, often marking the completion of a project or the end of a period.

Sexual Response

The physiological and emotional reactions of an individual to sexual stimulation, which can include phases of arousal, plateau, orgasm, and resolution.

Excitement

The condition of being emotionally aroused and stimulated.