When the price level increases, the effect of a change in government spending on real GDP will be understated

Between September 2013 and September 2014 the number of discouraged workers decreased from 852,000 to 698,000. Assuming the change resulted from discouraged workers starting to make specific efforts to find a job again, this change creates

A) an increase to the U-3 unemployment rate. B) a decrease to the U-3 unemployment rate. C) no change to the U-3 unemployment rate. D) a decrease in the labor force participation rate.

The total dollar amount of excise taxes people pay each year depends on ______.

a. income level b. purchases of certain products c. net worth d. returns from investments