What Is the Effect of a Decrease in Both Government

question 132

Multiple Choice

What is the effect of a decrease in both government spending and taxes by the same amount?

• A)GDP will fall but unemployment will rise.
• B)GDP will rise and unemployment will fall.
• C)Both GDP and unemployment will fall.
• D)Both GDP and unemployment will rise.
• E)There will be no effect on GDP or unemployment.

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Definitions:

Parallel Processing

Parallel processing in psychology refers to the ability of the brain to simultaneously process incoming stimuli of differing quality, a key component of most cognitive processes.

Activation-Synthesis Theory

A hypothesis on dream formation, suggesting that dreams result from the brain's attempt to make sense of neural activity that occurs during sleep.

Circadian Rhythm

The natural, inner process that directs the wake-sleep cycle and recurs roughly every 24 hours.

Unconscious Information Processing

The handling and reaction to information by the brain without conscious awareness.