Since income tax revenues will rise (fall) as expenditures and output increase (decrease) the income tax results in
A) a reduction in the multiplier effect on GDP of autonomous expenditures.
B) autonomatic stabilization of GDP.
C) A and B.
D) None of the above.
Correct Answer:
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Q5: Which of these variables remains exogenous throughout
Q26: Figure 3-2 Q33: Figure 3-2 Q38: Figure 3-2 Q64: When an economy is in equilibrium, Q65: The "equilibrating mechanism," the reason the economy Q103: In an economy described by the assumptions Q120: If the gap between the actual level Q128: If the MPS is 0.1 and the Q137: Fluctuations in total output are the reverse 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
A)planned expenditures
