If Net Taxes Increase and Government Purchases Decrease

question 20

Multiple Choice

If net taxes increase and government purchases decrease,

• A)the price level will rise
• B)the money supply must increase
• C)the aggregate demand will shift rightward
• D)output and employment will fall
• E)there will be a federal budget deficit

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Definitions:

Blood Disorder

A condition affecting the blood's ability to function properly, which can include diseases like anemia or hemophilia.

Sickle-cell Anemia

A genetic blood disorder caused by a recessive gene where red blood cells assume an abnormal, rigid, sickle shape, causing blockage in blood flow and pain.

Oxygen

A chemical element essential for most forms of life on Earth, commonly utilized in cellular respiration.

Infertility Problems

Issues or conditions that impair the ability of an individual or couple to conceive after a year or more of regular sexual intercourse without contraception.