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Disposable Income and Real GDP Behave the Same Way Because

Question 73

Multiple Choice

Disposable income and real GDP behave the same way because


A) taxes and transfer payments are not proportional to income.
B) disposable income is the same as real GDP.
C) taxes and transfer payments are less than 10 percent of income.
D) taxes and transfer payments are nearly proportional to income.
E) taxes and transfer payments are a negligible fraction of income.

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