The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift.
a. real GDP
b. government tax revenue
c. the money supply
d. real interest rate
e. the consumer price index
Question 2
A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market. This is an example of:
a. a positive economic statement.
b. a negative economic statement.
c. the fallacy of composition.
d. a normative economic statement.
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