Multiple Choice
The introduction of an autonomous net tax will
A) have no effect on real GDP,since real GDP = C + I + G,which does not include taxes
B) affect consumption through a change in disposable income
C) affect consumption through its effect on investment
D) affect government spending,since the government levies the tax
E) increase real GDP,since it enables government to increase spending
Correct Answer:

Verified
Correct Answer:
Verified
Q14: If autonomous net taxes increase by $200
Q15: The simple tax multiplier must always be
Q16: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q17: If the government increases its purchases by
Q18: The formula for the multiplier that results
Q20: A $100 increase in government purchases will
Q21: Assume autonomous net taxes rise by $400;
Q22: Suppose both autonomous taxes and transfer payments
Q23: If autonomous net taxes decline by $40
Q24: If government purchases and autonomous net taxes