MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 11, Problem 9SQ
To determine

The impact of equal increase in the tax rate and the government spending.

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If the government wants to increase real GDP levels, it could  A) decrease government expenditures and increase taxes.    B) increase government expenditures.    C) decrease government expenditures.    D) increase taxes.
Which of the following is incorrect regarding tax revenues? a.they increase during recessions b.they increase during economic expansions c. they are a revenue source in the government's budget d. they change with changes in the tax rate
Use the following equations for exercises 16–18. C= $100+.8Y I= $200 G= $250 X = $100.2Y
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