According to the Macroeconometric Model Developed by Data Resources Incorporated

question 142

Multiple Choice

According to the macroeconometric model developed by Data Resources Incorporated, if taxes are increased by $100 billion, but the money supply is held constant, then GDP will fall by about:

• A) zero.
• B) $25 billion.
• C) $75 billion.
• D) $100 billion.

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