Changes in government spending and taxes represent movements along the aggregate demand curve.
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Q80: When the government intentionally uses taxes and
Q81: According to the multiplier concept, an increase
Q82: Fiscal policy is most effective when the
Q83: Higher taxes affect real GDP indirectly through
Q84: Balanced-budget changes in fiscal policy imply that
Q86: When the price level increases, the effect
Q87: An increase in federal income tax rates
Q88: Other things being equal, an increase in
Q89: How the government finances its spending does
Q90: Taxes affect aggregate demand indirectly by changing
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