Multiple Choice
You are an analyst preparing a forecast of the effects of macroeconomic changes in the economy. What happens to prices and GDP when corporate taxes rise in the economy?
A) Both prices and GDP increase.
B) Both prices and GDP decrease.
C) Prices increase, and GDP decreases.
D) Prices decrease, and GDP increases.
Correct Answer:
Verified
Correct Answer:
Verified
Q74: Planned investment refers to the:<br>A)total investment.<br>B)intentional expenditures
Q75: Macroeconomic equilibrium occurs where:<br>A)aggregate demand intersects with
Q76: The international trade effect is the:<br>A)inverse relationship
Q77: Besides consumption, the component(s) of aggregate demand
Q78: You are an analyst preparing a forecast
Q80: What is meant by sticky wages, and
Q81: In the long run, the aggregate supply
Q82: (Figure: Shift of the Aggregate Demand Curve)
Q83: Expansionary fiscal policy _ taxes, _ government
Q84: (Figure: Shift of the Aggregate Demand Curve)