The government increases taxes. As a result, in the short run, real GDP ________ and the price level ________.
A) increases; rises
B) decreases; falls
C) decreases; rises
D) increases; falls

Question

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The Answer of The government increases taxes. As a result, in the short run, real GDP ________ and the price level ________.
A) increases; rises
B) decreases; falls
C) decreases; rises
D) increases; falls

The Government Increases Taxes