In Our Simple Macro Model with Government,which Statement Is Correct

question 54

Multiple Choice

In our simple macro model with government,which statement is correct regarding the following equation: T = (0.2) Y?

• A)Total tax revenues are equal to 20% of disposable income.
• B)Total tax revenues are equal to 20% of real GDP.
• C)Net tax revenues are equal to 20% of disposable income.
• D)If national income increases by $1.00,then net tax revenue increases by $0.20.
• E)If total tax revenue increases by $0.20,then national income increases by $1.00.

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Definitions:

Population Mean

The average value of a set of data across an entire population.

Sample Size

The number of observations or data points collected from a larger population for the purpose of statistical analysis.

Confidence Interval

A set of values gathered from sample statistics that is presumed to hold the value of an undetermined population parameter.

Margin Error

An expression of the amount of random sampling error in a survey's results, which describes the range within which the true value lies with a certain level of confidence.