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.

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Definitions:

Antibiotic Resistance

The ability of bacteria and other microorganisms to resist the effects of an antibiotic to which they were once sensitive, leading to treatment challenges.

Viral Resistance

The ability of an organism or cell to resist the effects of a virus, often through genetic or biochemical mechanisms.

Motility

The ability of an organism or cell to move by itself, utilizing various mechanisms like flagella or muscular contractions.

Chromosomes

Filamentous entities found within the nucleus of both animal and plant cells, composed of protein and a singular molecule of DNA (deoxyribonucleic acid).