If the government increases taxes, what happens to the price index and the actual real GDP holding all else constant? Group of answer choices In this case, the price index decreases and the actual real GDP decreases. In this case, the price index increases and the actual real GDP decreases. In this case, the price index increases and the actual real GDP increases. In this case, the price index decreases and the actual real GDP increases.
If the government increases taxes, what happens to the price index and the actual real GDP holding all else constant? Group of answer choices In this case, the price index decreases and the actual real GDP decreases. In this case, the price index increases and the actual real GDP decreases. In this case, the price index increases and the actual real GDP increases. In this case, the price index decreases and the actual real GDP increases.
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
Section18.10: Demand-side And Supply-side Views Of The Economy And Government Tools For Changing Real Gdp
Problem 1ST
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Question
If the government increases taxes, what happens to the price index and the actual real GDP holding all else constant?
Group of answer choices
In this case, the price index decreases and the actual real GDP decreases.
In this case, the price index increases and the actual real GDP decreases.
In this case, the price index increases and the actual real GDP increases.
In this case, the price index decreases and the actual real GDP increases.
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