Author Question: In the traditional Keynesian model, an income tax cut raises real GDP because A) consumption ... (Read 34 times)

rlane42 · **on:** Jun 30, 2018

In the traditional Keynesian model, an income tax cut raises real GDP because

A) consumption spending depends positively on after-tax income.
B) of the crowding-out effects of taxes.
C) consumption spending depends negatively on after-tax income.
D) consumption spending is not related to after-tax income.

Question 2

If the growth rates of nominal GDP and real GDP in an economy are 6 and 2 respectively, the inflation rate in the economy must be:

A) 2. B) 8. C) 4. D) 3.

ynlevi · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

C

Author Question: In the traditional Keynesian model, an income tax cut raises real GDP because A) consumption ... (Read 34 times)

rlane42

In the traditional Keynesian model, an income tax cut raises real GDP because A) consumption ...

ynlevi

In the traditional Keynesian model, an income tax cut raises real GDP because A) consumption ...

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