What Tends to Make the Size of a Shift in Aggregate

question 108

Multiple Choice

What tends to make the size of a shift in aggregate demand resulting from a tax change smaller than otherwise?

• A) multiplier effect
• B) crowding-out effect
• C) catch-up effect
• D) Fisher effect

---

Definitions:

Laws

Established rules of conduct enforced by a controlling authority, governing social, economic, and political relationships.

Additional Children

Refers to the increment in the number of children in a family, impacting financial planning and expenditures.

Conservative View

A perspective in economics or politics that typically advocates for less government intervention, lower taxes, and reduced public spending to encourage private sector growth.

Liberal View

A perspective that generally emphasizes the need for government intervention in the economy to correct inequalities and provide welfare.