Policies That Deter Investment Such as an Increase in the Corporate

question 108

Multiple Choice

Policies that deter investment such as an increase in the corporate profit tax rate,

• A) will increase aggregate demand due to increased tax revenue, and eventually shift the long-run aggregate supply (LRAS) curve to the right of where it would have been.
• B) will reduce aggregate demand, and eventually shift the LRAS curve to the left of where it would have been.
• C) will initially increase aggregate demand due to increased tax revenue, but eventually shift the long-run aggregate supply (LRAS) curve to the left of where it would have been.
• D) will initially reduce aggregate demand, but eventually shift the LRAS curve to the right of where it would have been as firms raise prices to compensate for the tax increase.

---

Definitions:

Antibody Mediated

Referring to the immune response that involves B cells producing antibodies to neutralize pathogens.

Lymphocytes

A type of white blood cell crucial for the immune system, mediating immune responses and including T cells and B cells.

Thymus

An organ located in the upper chest, which is part of the immune system and important for the development of T-lymphocytes.

Immune Response

Process of recognizing foreign macromolecules and mounting