An Equal Increase in Government Purchases and Taxes Will Cause

question 35

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.

---

Definitions:

NREM Sleep

Non-Rapid Eye Movement Sleep, a type of sleep that is characterized by slower brain waves and is considered restful and restorative.

General Adaptive Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body undergoes while under stress, described by Hans Selye.

Stressors

External or internal forces or events that cause stress to an individual, potentially affecting their mental and physical well-being.

Life-Change Research

Studies that examine how significant life events impact individuals' stress levels and overall well-being.