Government expenditures and taxes are assumed to be autonomous.What does this mean?
A) Government expenditures and taxes do NOT depend up on the level of GDP.
B) Government expenditures and taxes may be changed only through direct action by Parliament.
C) Government expenditures and taxes change only when the price level changes.
D) Government expenditures and taxes are autonomous at low levels of GDP but NOT at higher levels of GDP.
Correct Answer:
Verified
Q1: Suppose the MPC equals 0.75 and G
Q2: Which of the following assumptions is usually
Q3: Which of the following is NOT a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents