The Introduction of a $100 Autonomous Net Tax in an Economy

question 13

Multiple Choice

The introduction of a $100 autonomous net tax in an economy with an MPC equal to 0.8 will,at each level of real GDP,

• A)increase equilibrium real GDP demanded by $100
• B)decrease equilibrium real GDP demanded by $100
• C)increase equilibrium real GDP demanded by more than $100
• D)decrease equilibrium real GDP demanded by less than $100
• E)decrease equilibrium real GDP demanded by more than $100

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Definitions:

Prescribed Medications

Medicines that are given or recommended by a healthcare provider to treat or manage a specific medical condition.

Temper Tantrum

A Temper Tantrum is an emotional outburst, usually seen in young children, that can include crying, screaming, and aggressive behavior as a response to frustration or unmet needs.

Superego

A component of Sigmund Freud's personality theory that represents the ethical component, providing moral standards by which the ego operates.

Id

A component of the personality in Freud's psychoanalytic theory that is responsible for the instinctual and primitive behaviors.