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

---

Definitions:

Binding Decisions

Refers to final judgments, rulings, or agreements that parties are legally obligated to follow.

Non-Lawyer

An individual who does not have the legal qualifications or license to practice law.

Appealed

The process of seeking a higher court's review of a lower court's decision in hopes of overturning or modifying the decision.

ADR Contract Clause

A clause that specifies that the parties to the agreement have promised to use an alternative dispute resolution technique when a disagreement arises rather than litigating the issue.