Author Question: Would it be possible for an increase in taxation to decrease the gross domestic product measured in ... (Read 65 times)

ashley

  • Hero Member
  • *****
  • Posts: 584
Would it be possible for an increase in taxation to decrease the gross domestic product measured in the U.S.? Why or why not?

Question 2

Scarcity:
 a. ensures that people become satisfied with less than what they want.
  b. exists only during a recession.
  c. exists only in some countries.
  d. affects only poor people.
  e. requires people to make choices to satisfy their wants.



kaylee05

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

Yes, it would be possible for an increase in taxation to decrease GDP. Higher levels of taxation would provide an incentive for more individuals and business to attempt to avoid taxation either legally or illegally. Such illegal activities would lead to an increase in the underground economy but a decrease in GDP.

Answer to Question 2

e



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

For a complete list of videos, visit our video library