Respuesta :
If the government increases taxes, the price index and the actual real GDP holding all else constant is :
B) In this case, the price index increases, and the actual real GDP decreases.
An appropriate GDP increase charge is between 2% and 3%. The GDP boom rate changed to 2.6% for the 1/3 area of 2022, as compared to the second sector's 0.6% decline. The GDP growth rate measures how wholesome the financial system is. Whilst the wide variety is fine, the financial system is developing.
If GDP is falling, then the economy is shrinking - terrible information for companies and employees. If GDP falls for 2 quarters in a row, this is known as a recession, which could suggest pay freezes and misplaced jobs.
Economists historically use the gross home product (GDP) to measure monetary development. If GDP is rising, the financial system is in strong form, and the nation is moving ahead. On the other hand, if the gross domestic product is falling, the economy might be in trouble, and the nation is losing its floor.
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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?
A) In this case, the price index decreases, and the actual real GDP decreases.
B) In this case, the price index increases, and the actual real GDP decreases.
C) In this case, the price index decreases, and the actual real GDP increases.
D) In this case, the price index increases, and the actual real GDP increases.
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