A tax is considered to be autonomous if it is independent of
A)investment
B)consumption
C)government spending
D)real GDP
E)the price level

Question

Quizplus · Accepted Answer

An autonomous tax is independent of real GDP, meaning that it does not change with changes in economic activity or output. It is typically set by the government as a fixed amount or percentage, regardless of the level of economic activity.

A Tax Is Considered to Be Autonomous If It Is