If a Decrease in Net Taxes in the United States

question 127

Multiple Choice

If a decrease in net taxes in the United States resulted in a very large increase in aggregate output and a very small increase in the price level, then the U.S. economy must have been

• A) on the very steep part of the short-run aggregate supply curve.
• B) on the very flat part of the short-run aggregate supply curve.
• C) on the very steep part of the short-run aggregate demand curve.
• D) on the very flat part of the short-run aggregate demand curve.

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Definitions:

King George Iii

The King of Great Britain and King of Ireland from 1760 to 1820, whose reign included the American Revolutionary War and the loss of the American colonies.

American Loyalty

The sense of allegiance or fidelity to the United States, its principles, and its values.

Idea Of Independence

The concept that a nation, territory, or people should govern itself, free from external control or influence.

Class Conflict

The tension or antagonism which exists in society due to competing socioeconomic interests and desires between people of different classes.