Moving Along the Aggregate Expenditure (AE)curve,when Real GDP Increases,aggregate Planned

question 30

Multiple Choice

Moving along the aggregate expenditure (AE) curve,when real GDP increases,aggregate planned expenditures increase

• A)by the same percentage as real GDP.
• B)by more than real GDP.
• C)by less than real GDP.
• D)proportionately with real GDP.
• E)by the same amount as real GDP.

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Definitions:

Efficient Tax

A tax imposed in such a way that it creates the least possible distortion or inefficiency in the market or economy.

Costs Of Taxes

The economic burdens and inefficiencies that taxes impose on individuals and markets, including the distortion of consumer and producer behavior.

Taxpayers

Taxpayers are individuals or entities that are required to pay taxes to governmental bodies, based on earned income, property ownership, or other tax liabilities.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable, leading to a misallocation of resources.