The tax multiplier equals the change in ________ divided by the change in ________.
A) taxes; equilibrium real GDP
B) equilibrium real GDP; taxes
C) taxes; consumption spending
D) consumption spending; taxes
E) marginal tax rates; government revenue
Correct Answer:
Verified
Q116: Table 12.1 Q117: Table 12.3 Q118: Figure 12.7 Q119: Economists refer to the series of induced Q120: To combat inflation, the federal government could Q122: Suppose real GDP is $1.6 trillion and Q126: The government purchases multiplier equals the change Q138: A decrease in the tax rate will Q150: In absolute value,the tax multiplier is greater Q180: Suppose Political Party A proposes a tax 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![]()
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A)decrease