Which of the Following Tends to Make the Size of a Shift

question 33

Multiple Choice

Which of the following tends to make the size of a shift in aggregate demand resulting from a tax change smaller than would otherwise be the case?

• A) the multiplier effect
• B) the crowding-out effect
• C) expansionary monetary policy
• D) None of the above is correct.

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Definitions:

Normative Influence

The impact of the norms of a group on an individual's behavior, often leading to conformity in order to gain approval or avoid disapproval from others in the group.

Social Roles

The parts individuals play as members of a social group, which dictate their behavior in specific contexts.

Private Acceptance

The phenomenon where individuals personally accept a norm or belief internally, even if they don't express it publicly.

Inner Beliefs

Core personal convictions or accepting something as true without immediate empirical evidence, shaping one’s perception and response to the world.