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

---

Definitions:

Needs Level

Refers to the hierarchy of needs ranging from basic physiological needs to higher-level psychological needs, as identified in theories of psychology.

Relatedness Needs

The psychological needs for interpersonal relationships and emotional connections with others.

Esteem Needs

In Maslow’s hierarchy, include recognition from peers and colleagues.

Self-actualization

A psychological term referring to the realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.