A Tax Change Is a Determinant of the Size of the Shift

question 12

Multiple Choice

A tax change is a determinant of the size of the shift in the aggregate demand curve. The shift in aggregate demand curve will be affected by

• A) households' perceptions about whether the tax change is on income or on goods.
• B) households' perceptions about whether the tax change is local or national.
• C) households' perceptions about whether the tax change is good or bad.
• D) households' perceptions about whether the tax change is permanent or temporary.

---

Definitions:

Stomach

A muscular, hollow organ in the gastrointestinal tract that plays a major role in digestion by breaking down food with acid and enzymes.

Liver

A vital organ that performs essential functions such as detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Small Intestine

A long, coiled tube where most of the digestion and absorption of nutrients takes place.

Jejunum

The middle portion of the small intestine where a significant part of digestion and absorption of nutrients occurs.