In Our Simple Macro Model with Government,which Statement Is Correct

question 54

Multiple Choice

In our simple macro model with government,which statement is correct regarding the following equation: T = (0.2) Y?

• A)Total tax revenues are equal to 20% of disposable income.
• B)Total tax revenues are equal to 20% of real GDP.
• C)Net tax revenues are equal to 20% of disposable income.
• D)If national income increases by $1.00,then net tax revenue increases by $0.20.
• E)If total tax revenue increases by $0.20,then national income increases by $1.00.

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signifies a status where a company ceases operations, often due to financial problems or inability to sustain its business model.

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Liabilities or debts that have been invoiced but not yet settled or paid.

Common Stumbling Blocks

Frequent obstacles or problems that hinder progress in a process or project.