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
B
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In general, the less elastic the resource supply, the less the economic rent as a proportion of total earnings
Indicate whether the statement is true or false
If a U.S. importer has to write a $200 check to cover a 20,000 yen purchase from Japan, the exchange rate is
A. 200 yen to a dollar. B. 100 yen to a dollar. C. 20 yen to a dollar. D. 10 yen to a dollar.
The following national income statistics are in billions of dollars
Refer to the above data. Personal income is:
A.
$483 billion
B.
$376 billion
C.
$372 billion
D.
$317 billion
In Year 1, the price level was 120 and the average nominal income was $30,000. In Year 2, the price level was 125 and the average nominal level of income was $32,000. What happened to real income from Year 1 to Year 2?
A. It fell by $400 B. It rose by $400 C. It rose by $600 D. It rose by $2,000