If the Economy Is to Have Significant Built-In Stability, Then

question 209

Multiple Choice

If the economy is to have significant built-in stability, then when real GDP increases, the tax revenues should

• A) fall proportionately more than the change in GDP.
• B) fall proportionately less than the change in GDP.
• C) rise proportionately more than the change in GDP.
• D) rise proportionately less than the change in GDP.

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Definitions:

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