An income tax hike
A) increases potential GDP.
B) increases employment.
C) decreases potential GDP.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
Correct Answer:
Verified
Q73: An example of automatic fiscal policy is
A)Congress
Q74: Which of the following is a limitation
Q75: Government expenditure _ change potential GDP and
Q76: In an expansion,federal tax receipts increase proportionally
Q77: An increase in government expenditure can _
Q79: If a tax cut increases people's labor
Q80: Automatic stabilizers are defined as
A)actions taken by
Q81: Taxes that change with the level of
Q82: Automatic stabilizers decrease the impact of a
Q83: Needs-tested spending
A)increases as real GDP increases.
B)increases as
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