Second, the difference:
1, influence mode:
(1) Taxation is an indirect influence, which affects consumption expenditure and total demand by changing people's disposable income.
(2) The government purchase expenditure directly affects the total demand.
(3) Transfer payment indirectly affects total demand, and also affects consumption expenditure and total demand by changing people's disposable income.
2. Change direction:
(1) The change of tax revenue is opposite to the change of total demand. When taxes increase, people's disposable income decreases, thus reducing consumption and total demand.
(2) The changes of government purchase expenditure and total demand are in the same direction.
(3) The government transfer payment changes in the same direction as the total government purchase expenditure.
3, multiple:
(1) Tax: The reduction of total demand is several times that of tax increase, and vice versa. This multiple is the tax multiplier.
(2) Government purchase: The change of total demand is several times that of government purchase, and this multiple is the government purchase multiplier.
(3) The absolute values of government transfer payment multiplier and tax multiplier are the same. But the multiplier of government transfer payment is smaller than that of government purchase.