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:

Test Statistic

A calculated value from sample data used to decide whether to reject the null hypothesis in hypothesis testing.

P-value

The P-value is a statistical parameter that helps to determine the significance of the results from a hypothesis test, indicating the probability of observing the results if the null hypothesis is true.

P-value

A statistic that measures the probability of obtaining an observed result, or more extreme, under the assumption that the null hypothesis is true.

Null Hypothesis

A statement in statistics that proposes there is no significant difference or effect, and any observed difference is due to sampling or experimental error.