If the Government Raises Income Taxes, Then the Equilibrium Amount

question 12

Multiple Choice

If the government raises income taxes, then the equilibrium amount of employment_{-------------}and potential GDP _{-------------}.

• A)increases; decreases
• B)decreases; increases
• C)does not change; does not change
• D)increases; increases
• E)decreases; decreases

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Definitions:

Credit Card Sales

Transactions where the purchases are made by consumers using credit cards.