Whenever There Is an Upshift or Downshift in Aggregate Expenditures

question 31

Essay

Whenever there is an upshift or downshift in aggregate expenditures due to a change in one of its non-income determinants, the equilibrium GDP changes by a multiple of the initial change in spending.Explain this multiplier effect.

Differentiate between the costs to the private sector of government taxation and spending.

Identify the structure and impact of the federal tax system on different income groups.

Understand the changes in the distribution of personal income tax responsibilities across income groups over time.

Identify the main sources of federal government revenue and their relative significance.

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