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Gross domestic product (GDP) Consumption (C) $0 $40 100 120 200 200 300 280 400 360 Refer to the above data. If a lump-sum tax
Gross domestic product (GDP) Consumption (C) $0 $40 100 120 200 200 300 280 400 360 Refer to the above data. If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy, we can conclude that the tax: Multiple Choice reduces the economy's built-in stability. neither increases nor decreases built-in stability. increases the MPC and therefore increases the size of the multiplier. enhances the economy's built-in stability
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