Multiple Choice
Exhibit 11-2
-Refer to the graph in the exhibit.Consider an economy characterized by the aggregate expenditure line.How would a $100 decrease in autonomous net taxes affect real GDP?
A) It would decrease real GDP by $100.
B) It would decrease real GDP by $200.
C) It would increase real GDP by $100.
D) It would increase real GDP by $200.
Correct Answer:

Verified
Correct Answer:
Verified
Q97: How do transfer payments and taxes affect
Q98: Suppose the economy is experiencing an expansionary
Q99: Which of the following best describes the
Q100: Assume autonomous net taxes fall by $300,
Q101: Suppose the economy is already producing at
Q103: Suppose transfer payments and autonomous taxes both
Q104: Which of the following is NOT a
Q105: Suppose the MPC equals 0.75 and G
Q106: Assume autonomous net taxes rise by $500,
Q107: Assume that initially G is $100 and