Ignoring any supply-side effects, when taxes are hiked, real GDP-------------------- and the price level--------------------
.
A) decreases; rises
B) increases; rises
C) decreases; does not change
D) decreases; falls
E) increases; falls
Correct Answer:
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Q41: A cut in the income tax rate
Q42: In order to reduce inflationary pressure on
Q43: A tax cut that increases the budget
Q44: The last U.S. president to be in
Q45: Q47: Which of the following is a limitation Q48: Which of the following is an example Q49: The balanced budget multiplier is Q50: Discretionary fiscal policy is defined as fiscal Q51: In a recession, needs-tested spending--------------------and induced taxes--------------------
A)positive because the
A)increases;
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