Consumer tax rates-real gross domestic product

Reference no: EM13696645

In the long-run, if government increases consumer tax rates, real gross domestic product (GDP), unemployment and the price level will change in which of the following ways?

Real GDP Unemployment Price level

1) Decrease - Decrease - Decrease

2) Increase - Increase - Decrease

3) Increase - Decrease - Increase

4) Decrease - Increase – Decrease

Reference no: EM13696645

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