Tax Collections Alter the Equilibrium Level of GDP by

question 61

Multiple Choice

Tax collections alter the equilibrium level of GDP by

• A) causing a change in government spending.
• B) changing the relationship between government expenditures and GDP.
• C) changing the relationship between consumption expenditures and GDP.
• D) shifting the 45-degree line to the left.
• E) causing an increase in prices.

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Definitions:

Decimal Places

The positions to the right of the decimal point in a number, each place representing a power of ten in the base ten number system.

Logarithmic Equation

A mathematical equation involving a logarithm of a variable or expression, often used to solve for variables in exponential functions.

Decimal Places

Positions to the right of a decimal point in a number, indicating fractions of a whole.

Exponential Equation

An equation in which the variable appears in an exponent.