If the economy spends 80 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:

Fluctuations in investment: a. account for almost all of the variability in gross domestic product (GDP) only during expansions. b. account for little of the variability in gross domestic product (GDP)

c. account for almost all of the variability in gross domestic product (GDP) only during recessions. d. are larger during expansions than during recessions. e. account for more of the variability in gross domestic product (GDP) than consumption.

Suppose George's income is $10,000 and he pays a tax of $1,000 . but Laura's income is $50,000 and she pays a tax of $4,000 . Such a tax is:

a. regressive. b. progressive. c. proportional. d. flat.