According to the Traditional Keynesian Approach, If the Government Increases

question 186

Multiple Choice

According to the traditional Keynesian approach, if the government increases taxes, then

• A)real Gross Domestic Product (GDP)will fall and the price level will remain constant.
• B)real Gross Domestic Product (GDP)will fall but the price level will rise.
• C)both real Gross Domestic Product (GDP)and the price level will fall.
• D)real Gross Domestic Product (GDP)will remain constant but the price level will rise.

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Definitions:

Secondary Sources

Information or research that is derived from the analysis or interpretation of primary sources.

Variables

Elements, features, or factors that are liable to vary or change.

Trends

Patterns or general directions in which something is developing, changing, or swaying public interest.

Relative Frequency

The proportion of times a specific event or outcome occurs compared to the total number of events or outcomes observed.