In the Medium Run,a Tax Increase That Causes a Reduction

question 37

Multiple Choice

In the medium run,a tax increase that causes a reduction in the budget deficit will

• A)affect only the price level.
• B)not affect the price level but will alter the composition of output.
• C)not affect the level of output, but will affect the composition of output.
• D)affect both the level and composition of output.

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Definitions:

Pituitary

A pea-sized gland located at the base of the brain, crucial for controlling various hormonal activities in the body.

Future Time Perspective

The degree to which individuals think about the future, make future-oriented plans, and take action to achieve future goals.

Logical Order

The sequential arrangement of ideas, facts, or events based on their logical relationships to one another, enhancing comprehension and coherence in written or spoken discourse.

Apocrine Sweat Glands

A type of sweat gland mainly found in underarm and genital areas, responsible for secreting a thicker sweat that, when broken down by bacteria, produces body odor.