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Tax Multipliers
Measures the impact of changes in taxes on the overall economic output, indicating how tax changes affect GDP.
Spending Multipliers
Describe the effect of a change in spending (typically by the government) on the total economic output, indicating how initial spending leads to increased levels of income and consumption.
Permanent Income
A theory suggesting that people's consumption choices are more influenced by their expected long-term average income rather than by their current income.
Consumption Spending
Expenditures by individuals and households on goods and services for personal use.
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