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Question Practice

What effect does an increase in taxes have on equilibrium income, assuming government spending remains unchanged?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Determination Of Income And Employment
Question Bank

What effect does an increase i...

Single Answer MCQ
Q-00089119

What effect does an increase in taxes have on equilibrium income, assuming government spending remains unchanged?

1

Equilibrium income increases

2

Equilibrium income decreases

3

Equilibrium income stays constant

4

Equilibrium income fluctuates

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