According to the traditional Keynesian approach, if the government increases taxes, then
A) real Gross Domestic Product (GDP) will fall and the price level will remain constant.
B) real Gross Domestic Product (GDP) will fall but the price level will rise.
C) both real Gross Domestic Product (GDP) and the price level will fall.
D) real Gross Domestic Product (GDP) will remain constant but the price level will rise.
Ans: A) real Gross Domestic Product (GDP) will fall and the price level will remain constant.
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The law of diminishing marginal utility is the principle that the marginal utility curve ____ as people consume more of a product in a given period
a. rises. b. falls. c. remains unchanged. d. first falls and then rises.
Published in 1776, ________ was written by Adam Smith
A) "The General Theory of Employment, Interest, and Money" B) "The Communist Manifesto" C) "The Declaration of Economics" D) "An Inquiry into the Nature and Causes of the Wealth of Nations"
A change in the price of a service leads to a change in quantity demanded of the service.
Answer the following statement true (T) or false (F)
Imperfect competition
A. should always be regulated by the government B. results in less efficient market outcomes. C. is a major cause of externalities in the market. D. means there is no competition in the market.