A Change in Taxes Shifts the Aggregate Demand Curve by Less

question 145

True/False

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

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Definitions:

Variance

A measure of the dispersion of a set of values, calculated as the average of the squared deviations from the mean.

Observations

The instances or data points collected or recorded for the purpose of analysis.

Coefficient of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution.

Weights

Quantitative values assigned to elements of a set as a measure of their importance or influence in statistical calculations.