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What should happen to equilibrium gdp on the demand side

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Reference no: EM13321408

1. Which of the following is considered a fixed tax and which a variable tax?

a. The gasoline tax

b. The corporate income tax c. The estate tax

d. The payroll tax

2. In a certain economy, the multiplier for government purchases is 2 and the multiplier for changes in fixed taxes is 1.5. The government then proposes to raise both spending and taxes by $100 billion. What should happen to equilibrium GDP on the demand side?

Reference no: EM13321408

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