Answer to Question #256026 in Economics for Tenn

Question

In at least three well composed paragraphs, please describe the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).

Answer 1

Increase in business taxes will decrease country’s gross domestic product (GDP) and vice versa.

Increase in personal income will increase GDP and vice versa.

And changes in transfer payments will have no effect on a country’s GDP.