In the graph, tax revenues vary
A) directly with the level of GDP.
B) inversely with the level of GDP.
C) directly with the level of government spending.
D) inversely with the level of government spending.

Question

In the graph, tax revenues vary
A) directly with the level of GDP. 
B) inversely with the level of GDP. 
C) directly with the level of government spending. 
D) inversely with the level of government spending.

Quizplus · Accepted Answer

The graph shows that as GDP increases, tax revenues also increase. Therefore, tax revenues vary directly with the level of GDP.

In the Graph, Tax Revenues Vary