How Do Permanent Tax Cuts Shift the AD Curve Compared

question 22

Multiple Choice

How do permanent tax cuts shift the AD curve compared with temporary tax results?

• A) Permanent tax cuts shift the AD curve farther to the right than temporary tax cuts do.
• B) Permanent tax cuts shift the AD curve less to the right than temporary tax cuts do.
• C) Permanent tax cuts shift the AD curve farther to the left than temporary tax cuts do.
• D) Permanent tax cuts shift the AD curve less to the left than temporary tax cuts do.

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Definitions:

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A condition characterized by extremely strict or inflexible moral beliefs and self-critical standards.

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The achievement of performance goals or targets, typically within a specified time frame or under certain conditions.