Abstract
This study aims to analyze the impact of taxes, the BI Rate, and inflation on GDP in Indonesia. Based on the regression analysis, it was found that taxes have a positive impact on GDP with a coefficient of 0.429, indicating that every 1 percent increase in taxes can increase GDP by 0.429 percent. This finding is consistent with Keynesian theory, which suggests that taxes can be used as a fiscal policy instrument to influence the economy. Meanwhile, the BI Rate has a negative impact on GDP with a coefficient of -0.011, indicating that every 1 percent increase in the interest rate can decrease GDP by 0.011 percent. This supports the monetary theory that higher interest rates tend to reduce investment and consumption, ultimately leading to a decrease in GDP. Inflation, on the other hand, does not show a significant impact on GDP in this study, with a significance value of 0.340, which is greater than 0.05. This finding contradicts classical economic theory, which regards inflation as a factor that hinders economic growth. This study provides an overview that appropriate fiscal and monetary policies can influence economic growth, while the impact of inflation on GDP is more complex and depends on other factors.
Keywords. Taxes, BI Rate, Inflation, GDP, Indonesian Economy
JEL. B25; G20; J71; N32; P16.
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