1. Which of the following is considered a fixed tax and which a variable tax?
a. The gasoline tax
b. The corporate income tax c. The estate tax
d. The payroll tax
2. In a certain economy, the multiplier for government purchases is 2 and the multiplier for changes in fixed taxes is 1.5. The government then proposes to raise both spending and taxes by $100 billion. What should happen to equilibrium GDP on the demand side?