If Tax Rates Are Raised to Avoid a Deficit During

question 5

Multiple Choice

If tax rates are raised to avoid a deficit during a recession,then

• A)real GDP and deadweight loss from taxes will rise.
• B)real GDP will rise and deadweight loss from taxes will fall.
• C)real GDP will fall and deadweight loss from taxes will rise.
• D)real GDP and deadweight loss from taxes will fall.

---

Definitions:

Cytoskeletal Filaments

Protein fibers in the cytoskeleton of a cell serving structural and mobility functions, including microfilaments, intermediate filaments, and microtubules.

Glycolipids

Compounds composed of carbohydrates covalently bonded to lipids; they play a key role in cell recognition and membrane structure.

Actin Filaments

Thin, flexible fibers that are a major component of the cytoskeleton in cells and play a crucial role in cell movement and shape.

Lipids

A diverse group of organic compounds, including fats, oils, and waxes, that are insoluble in water but soluble in organic solvents.