A $200 Increase in Government Purchases Has a Greater Effect

question 35

True/False

A $200 increase in government purchases has a greater effect on the equilibrium level of real GDP than a $200 decrease in autonomous net taxes would.

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Definitions:

Committee of Correspondence

Groups formed in the American colonies to maintain communication lines and coordinate actions against British policies before the American Revolution.

Colonists' Rights

The rights claimed by the inhabitants of colonies, especially concerning self-governance, freedom from external interference, and legal equality.

Resistance Movement

A group or collection of individuals who actively oppose an occupying force or the policies of an existing government, typically through various forms of noncompliance and sabotage.

Coercive Acts

Legislation passed by the British parliament intended to reassert control over the American colonies by closing the Boston Harbor and removing Massachusetts' governmental autonomy.