Question: On average, does an increase in taxes raise or lower real GDP ? multiple choice 1 Lower Raise If taxes as a percentage of GDP

On average, does an increase in taxes raise or lower real GDP?
multiple choice 1
Lower
Raise
If taxes as a percentage of GDP go up by 1 percent, by how much does real GDP typically change?
multiple choice 2
3 to 4 percent
2 to 3 percent
1 to 2 percent
Are the decreases in real GDP caused by tax increases temporary or permanent?
multiple choice 3
Temporary
Permanent
Does the intention of a tax increase matter?
multiple choice 4
No
Yes

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