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An aide to a U.S.Congressman computes the effect on aggregate demand of a $20 billion tax cut.The actual increase in aggregate demand is less than the aide expected.Which of the following errors in the aide's computation would be consistent with an overestimation of the impact on aggregate demand?
First Principle
A fundamental concept or assumption that serves as the foundation for a system of belief or behavior or for a chain of reasoning.
Rawls
Refers to John Rawls, an influential 20th-century philosopher known for his theories on justice and political liberalism.
Moral Theory
A system of principles that helps in determining what is right and wrong in human behavior.
Kantianism
A philosophy based on the ethical theories of Immanuel Kant, emphasizing duty, moral principles, and the categorical imperative.
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