How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? a. Negative effect on net exports b. Negative effect on the gross domestic capital formation c. Increase in government’s budget d. Positive effect on private consumption
How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? a. Negative effect on net exports b. Negative effect on the gross domestic capital formation c. Increase in government’s budget d. Positive effect on private consumption
Chapter4: The Aggregate Economy
Section: Chapter Questions
Problem 6E
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Question
How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach?
a.
Negative effect on net exports
b.
Negative effect on the gross domestic capital formation
c.
Increase in government’s budget
d.
Positive effect on private consumption
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