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MMLU / Which of the following choices is most likely to create the greatest decrease in…

Problem

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question

Which of the following choices is most likely to create the greatest decrease in real GDP?

choices

  1. The government decreases spending matched with a decrease in taxes.
  2. The government increases spending with no increase in taxes.
  3. The government decreases spending with no change in taxes.
  4. The government holds spending constant while increasing taxes.

subject

high_school_macroeconomics

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Official source

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