Transcribed Image Text:Sum 2019 i
Gross Domestic Product
(GDP)
$0
100
200
300
400
Consumption (C)
$40
120
200
280
360
The accompanying table is the before-tax consumption schedule for a closed economy. If a lump-sum tax (the same tax amount at each level
of GDP) of $40 is now imposed in this economy, the consumption schedule will be
Gross Domestic Product
(GDP)
$0
100
200
300
400
Consumption (C)
$40
120
200
280
360
The accompanying table is the before-tax consumption schedule for a closed economy. If a lump-sum tax (the same tax amount at each level
of GDP) of $40 is now imposed in this economy, the consumption schedule will be
