An increase in personal income taxes will most likely result in which of the following changes in real GDP and the price level in the short-run?

An increase in personal income taxes will most likely result in which of the following changes in real GDP and the price level in the short-run?


Real GDP Price Level



A. Decrease Decrease
B. Decrease Increase
C. Increase No change
D. Increase Increase
E. Increase No change





Answer: A


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