What Tends to Make the Size of a Shift in Aggregate

question 108

Multiple Choice

What tends to make the size of a shift in aggregate demand resulting from a tax change smaller than otherwise?

• A) multiplier effect
• B) crowding-out effect
• C) catch-up effect
• D) Fisher effect

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Definitions:

Adhocracy

A flexible, adaptable, and informal organizational structure that is defined by a lack of rigid procedures, roles, and hierarchies, facilitating innovation and creativity.

Mutual Adjustment

A process of coordinating actions and decisions through informal communication and negotiation among parties.

Support Staff

Employees who provide administrative or technical support to an organization, enabling primary operations without being directly involved.

Formalization

The extent to which organizations use rules, procedures, and structured communication to govern behaviors and operations.