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A $100 Increase in Government Purchases Will Have Exactly the Same

question 65

True/False

A $100 increase in government purchases will have exactly the same effect on equilibrium real GDP as a $125 decrease in autonomous net taxes regardless of the value of the MPC.


Definitions:

Petty Annoyances

Minor irritations or frustrations that though trivial, can disproportionately affect mood and well-being.

Irritations

Mild forms of discomfort or annoyance, often triggered by specific environmental or psychological stimuli.

Frustrations

are feelings of dissatisfaction and discomfort arising from obstacles that prevent one from achieving goals or satisfying needs.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, ideas, or values at the same time.

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