A Change in Taxes Shifts the Aggregate Demand Curve by _____

question 123

Multiple Choice

A change in taxes shifts the aggregate demand curve by _____ than a change in government spending for goods and services and has a _____ effect on real GDP.

• A)more; smaller
• B)more; larger
• C)less; smaller
• D)less; larger

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Definitions:

Event

An occurrence or happening, especially one of significance.

Prototype

An original model or preliminary version from which other forms are developed or copied.

Mental Category

A cognitive process that involves grouping or classifying objects, events, or ideas based on shared properties or characteristics.

Multitasking

The ability to perform more than one task or activity over a short period of time.