Changes in Taxes and Government Transfers Shift the Aggregate Demand

question 98

Multiple Choice

Changes in taxes and government transfers shift the aggregate demand curve _____ government purchases.

• A)by more than
• B)by exactly as much as
• C)by less than
• D)in inverse proportion to

---

Definitions:

Slope

A measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Forbes 500 List

An annual ranking by Forbes magazine of the 500 largest U.S. corporations, based on their revenue.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables, often used for prediction and forecasting.

Slope

In statistics, the rate at which one variable changes over another, specifically in the context of linear regression.