A Macroeconomist Would Most Likely Study the Effect of a Reduction

question 116

Multiple Choice

A macroeconomist would most likely study the effect of a reduction in income tax rates on:

• A)inflation.
• B)the output of the steel industry.
• C)total output in the economy.
• D)unemployment
• E)all of the variables listed except the output of the steel industry.

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Definitions:

Homogeneous Catalysts

Catalysts that exist in the same phase as the reactants in a chemical reaction, facilitating the reaction without being consumed.

Same Phase

A term referring to substances that are in the same state of matter (solid, liquid, gas) under the same conditions.

Reactants

Initial compounds in a chemical reaction that are depleted as they contribute to the formation of the products.

Exothermic Reactions

Chemical reactions that release energy by light or heat.