Once the expenditure schedule has been adjusted for tax levels, the determination of equilibrium GDP
A)is no longer possible.
B)becomes much more difficult.
C)proceeds exactly as before.
D)requires a higher multiplier value.

Question

Quizplus · Accepted Answer

The determination of equilibrium GDP still proceeds exactly as before because the adjustment for tax levels is already factored into the expenditure schedule. Therefore, there is no need for a higher multiplier value or any other significant changes in the process of determining equilibrium GDP.

Once the Expenditure Schedule Has Been Adjusted for Tax Levels