A lump-sum tax means that
A)the tax only applies to one time period.
B)the same amount of tax revenue is collected at each level of GDP.
C)tax revenues vary directly with GDP.
D)tax revenues vary inversely with GDP.

Question

Quizplus · Accepted Answer

A lump-sum tax is a fixed amount of tax that does not change with the level of GDP, meaning the same amount of tax revenue is collected regardless of GDP changes.

A Lump-Sum Tax Means That