If the Government Increased Autonomous Net Taxes by $60 Million

question 2

Multiple Choice

If the government increased autonomous net taxes by $60 million and increased its own purchases by the same amount, we would expect the net effect of these actions to be

• A)an increase in aggregate demand, which is a rightward shift of the aggregate demand curve
• B)an increase in aggregate demand, which is a leftward shift of the aggregate demand curve
• C)a decrease in aggregate demand, which is a rightward shift of the aggregate demand curve
• D)a decrease in aggregate demand, which is a leftward shift of the aggregate demand curve
• E)to leave the aggregate demand curve unchanged

---

Definitions:

Delegation

The assignment of responsibility or authority to another person to carry out specific activities, often seen in organizational contexts and management.

Transferring Authority

The process of handing over control or responsibility from one individual or entity to another.

Selected Situation

A specific scenario or setting chosen for particular analysis, observation, or intervention.

Post-Operative

Referring to the period after surgical procedures, focusing on patient recovery, wound healing, and monitoring for any complications.