If an Increase in Net Taxes in the United States

question 89

Multiple Choice

If an increase in net taxes in the United States resulted in a very large decrease in aggregate output and a very small decrease in the price level, then the U.S. economy must have been

• A) on the very steep part of the short-run aggregate supply curve.
• B) on the very flat part of the short-run aggregate supply curve.
• C) on the very steep part of the short-run aggregate demand curve.
• D) on the very flat part of the short-run aggregate demand curve.

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Definitions:

Implicit Memory

Retention of learned skills or classically conditioned associations independent of conscious recollection. (Also called nondeclarative memory.)

Creative Intelligence

The ability to adapt to new situations and generate novel ideas or solutions.

Practical Intelligence

Intelligence related to everyday problem-solving and adapting to environmental challenges.

Innovation

The process of creating new ideas, products, or methods through creativity and experimentation.