Multiple Choice
Which of the following observations is true?
A) Tax changes have no impact on the consumption schedule.
B) Tax reduction shifts the consumption schedule upward.
C) Changes in taxes have a multiplier effect on equilibrium GDP on the supply-side.
D) Tax increases increase equilibrium GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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Q99: Figure 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-2