The Introduction of an Autonomous Net Tax Will

question 19

Multiple Choice

The introduction of an autonomous net tax will

• A)have no effect on real GDP,since real GDP = C + I + G,which does not include taxes
• B)affect consumption through a change in disposable income
• C)affect consumption through its effect on investment
• D)affect government spending,since the government levies the tax
• E)increase real GDP,since it enables government to increase spending

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Definitions:

Federal

Pertaining to the national level of government, as opposed to state or local levels, often involved in regulating labor laws and workers' rights across the whole country.

Unionism

The practice or advocacy of organizing and joining labor unions to protect and enhance workers' rights and working conditions.

Legal Union Federation

An umbrella organization created to represent the collective interests of multiple labor unions or workers’ associations according to legal statutes.

Convergence Thesis

A theory suggesting that industrial societies, regardless of their initial cultural, social, or economic differences, will eventually develop similar structures and values through the process of industrialization.