How Does a Decrease in Autonomous Net Taxes Affect GDP

question 118

Multiple Choice

How does a decrease in autonomous net taxes affect GDP?  

• A) It increases GDP as much as an equal decrease in government purchases. 
• B) It increases GDP less than an equal increase in government purchases. 
• C) It decreases GDP more than an equal decrease in government purchases. 
• D) It changes GDP in an unpredictable manner.

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