Multiple Choice
-In the above figure, if the economy is initially at point B and taxes are raised, if potential GDP does not change then the economy will move to point
A) stay at point B.
B) move to point C.
C) move to point D.
D) move to point A.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q81: An increase in taxes on labor income
Q82: The size of the government expenditure multiplier
Q83: If we compare the United States to
Q84: The structural deficit is that deficit that
Q86: When real GDP is less than potential
Q87: The government budget deficit tends to decline
Q88: The government begins year 1 with $25
Q89: What are automatic stabilizers? How do they
Q90: If the budget deficit is $50 billion
Q260: Which of the following relationships is correct?<br>A)