If the Time Path of Government Purchases Does Not Change

question 6

Multiple Choice

If the time path of government purchases does not change and the government cuts lump sum taxes, then:

• A)real GDP does not change.
• B)real consumption increases.
• C)real gross investment falls.
• D)all of the above.

---

Definitions:

Canada

A country in North America known for its vast landscapes, multicultural cities, and bilingual French and English heritage.

Earnings

Earnings refer to the amount of money an individual makes from work or investments, often considered as a measure of financial success or economic contribution.

Canadian Women

Refers to females who are citizens of Canada, focusing on their roles, rights, and experiences within Canadian society.

Men

Men refers to adult males, typically characterized by biological and physiological distinctions from females, but also socially constructed roles and identities.