If a Change in the Tax Laws Leads to a $100

question 62

Multiple Choice

If a change in the tax laws leads to a $100 billion decrease in tax revenue,then aggregate demand

• A)increases by $100 billion.
• B)increases by less than $100 billion.
• C)increases by more than $100 billion.
• D)decreases by $100 billion.
• E)decreases by more than $100 billion.

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Definitions:

Multifactor Productivity

An efficiency measure that evaluates the output produced relative to a combination of input factors like labor, materials, and capital.

Inputs

Resources used in the production process, including raw materials, labor, and capital.

Outputs

The final products, services, or results generated by a system, process, or project.

Foundry

A workshop or factory for casting metal, where molten metal is poured into molds to create various shapes.