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Exam Sample IIA-CIA-Part2-3P-CHS Online, Actual IIA-CIA-Part2-3P-CHS Test | IIA-CIA-Part2-3P-CHS Valid Exam Blueprint - FreeTorrent

IIA-CIA-Part2-3P-CHS

Exam Code: IIA-CIA-Part2-3P-CHS

Exam Name: Certified Internal Auditor - Part 2 - Internal Audit Practice

Version: V22.75

Q & A: 580 Questions and Answers

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NEW QUESTION: 1
An increase in the personal income tax will tend to cause:
A. Real GDP to rise and unemployment to fall.
B. Real GDP to rise and unemployment to rise.
C. Real GDP to fall and unemployment to rise.
D. Real GDP to fall and unemployment to fall.
Answer: C
Explanation:
Choice "a" is correct. An increase in the personal income tax will cause a decrease in aggregate demand
(i.e., causes the aggregate demand curve to shift left). As a result, an increase in taxes causes real GDP
to fall and unemployment to rise.
Choice "b" is incorrect. Real GDP will fall, not rise.
Choice "c" is incorrect. Real GDP will fall, not rise.
Choice "d" is incorrect. Unemployment will rise, not fall.

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