Answer the following statements true (T) or false (F)

1) For an open mixed economy, the equilibrium level of GDP is determined where S a + I g + X = T + G.
2) Equal increases in government expenditures and tax collections will leave the equilibrium GDP
unchanged.
3) A $10 billion decrease in taxes will increase the equilibrium GDP by more than would a $10
billion increase in government expenditures.
4) A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax
consumption schedule.

1) F
2) F
3) F
4) F