A $200 Increase in Government Purchases Has Less of an Impact

question 41

True/False

A $200 increase in government purchases has less of an impact on the equilibrium level of real GDP than a decrease in autonomous net taxes of $200 would.

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Definitions:

Rate Busting

A term used, particularly in labor, to describe the act of working more quickly or efficiently than the expected or standard rate, which can disrupt agreed-upon wage scales or norms.

Group Incentives

Motivational rewards offered to a group of employees for achieving certain goals or performance benchmarks.

Disapproval

The expression of dissatisfaction or disagreement with something or someone, often leading to a negative evaluation or judgment.

Spot Bonus

An unplanned bonus given for employee effort unrelated to an established performance measure.