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Since income tax revenues will rise (fall) as expenditures and output increase (decrease) the income ...

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Since income tax revenues will rise (fall) as expenditures and output increase (decrease) the income ...

Since income tax revenues will rise (fall) as expenditures and output increase (decrease) the income tax results in
A) a reduction in the multiplier effect on GDP of autonomous expenditures.
B) automatic stabilization of GDP.
C) A and B.
D) None of the above.

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Macroeconomics

Edition: 12^th

Author: Gordon

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A good answer to a tough question

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