Consider the Government's Budget Deficit Function

question 117

Multiple Choice

Consider the government's budget deficit function.With an unchanged fiscal policy by government,an increase in GDP tends to ________ net tax revenues and thus ________ the budget deficit.

• A)raise; raise
• B)raise; lower
• C)lower; raise
• D)lower; lower
• E)lower; leave unchanged

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Definitions:

REMs

Rapid Eye Movements, referring to the quick, darting movements of the eyes during certain stages of sleep associated with dreaming.

Psychoactive Drug

A chemical substance that changes brain function and results in alterations in perception, mood, or consciousness.

Withdrawal

The process of reducing dependence on or quitting a substance, activity, or habit, often leading to uncomfortable symptoms.

Selective Attention

The cognitive process of focusing on a particular object or task within the environment while ignoring irrelevant information.