If Personal Taxes Were Decreased and Input Productivity Increased Simultaneously

question 151

Multiple Choice

If personal taxes were decreased and input productivity increased simultaneously, the equilibrium:

• A)output would rise.
• B)output would fall.
• C)price level would necessarily fall.
• D)price level would necessarily rise.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with a particular position in a government, organization, or institution.

Politically Conservative

Favoring traditional views and values, tending to oppose change in political and social systems.

Intolerant Of Ambiguity

A personality trait characterized by a lack of tolerance for uncertainty or situations that are not clear-cut.

Racist

An individual who believes in the superiority of one race over others and may discriminate or express prejudice based on racial characteristics.