In a Simple Macro Model with a Constant Price Level,a

question 9

Multiple Choice

In a simple macro model with a constant price level,a decrease in the net tax rate causes the AE curve to

• A)shift parallel downward.
• B)shift parallel upward.
• C)rotate downward.
• D)rotate upward.
• E)remain stationary.

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Definitions:

Personal Property

Everything that can be owned other than real estate.

Fixture

An item of property that is attached to a structure or land in such a way that removing it would damage the property or deplete its value.

Evict Tenants

The legal process through which a landlord may remove a tenant from rental property, typically due to failure to abide by the rental agreement.

Lease Agreement

A contract specifying the terms under which one party agrees to rent property owned by another party.