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A Decrease in Taxes Will Shift Aggregate Demand to the _____

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Short Answer

A decrease in taxes will shift aggregate demand to the _____, cause consumption to _____, and cause output to _____. Due to the crowding-out effect, investment will _____.


Definitions:

Null Hypotheses

The null hypothesis is a statement in statistical hypothesis testing that assumes no effect or no difference in the case of the study, serving as the default or initial assumption.

T-test

A statistical method employed to assess if there's a notable difference in the averages of two distinct groups.

Significance Level

A predetermined threshold for determining statistical significance in hypothesis testing, typically set at 0.05, which represents the risk of committing a Type I error.

T-statistic

A ratio of the departure of an estimated parameter from its notional value and its standard error.

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