Suppose Autonomous Net Taxes Equal $1 Trillion at All Levels

question 6

Multiple Choice

Suppose autonomous net taxes equal $1 trillion at all levels of real GDP.What can be safely assumed about net taxes?  

• A) They are autonomous. 
• B) They are equal to transfer payments. 
• C) They depend on the level of real GDP. 
• D) They equal zero when GDP equals zero.

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Definitions:

ATP

Adenosine Triphosphate, a molecule that carries energy within cells for metabolism and is considered the energy currency of life.

Epimysium

Fibrous envelope surrounding a skeletal muscle.

Perimysium

Fibrous sheath enveloping a bundle of skeletal muscle fibers (muscle fascicle).

Endomysium

Fine connective tissue sheath surrounding a muscle fiber.