A Decrease in Autonomous Net Taxes

question 53

Multiple Choice

A decrease in autonomous net taxes

• A)increases GDP as much as an equal decrease in government purchases
• B)increases GDP less than an equal increase in government purchases
• C)decreases GDP more than an equal decrease in government purchases
• D)changes GDP in an unpredictable manner
• E)has no effect on GDP

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Definitions:

Testing Instrument

A tool or device used to assess, evaluate, or measure the functionality, quality, or performance of a product or material.

Operating Cost

Operating cost encompasses the expenditures related to the day-to-day functions of a business, including costs for goods sold, administration, and general expenses.

Useful Life

Useful life is the estimated period over which an asset is expected to be usable for its intended purpose, affecting its depreciation or amortization schedules.

Differentiation Value

Refers to the unique benefits or characteristics of a product or service that set it apart from competitors in the eyes of customers.