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:

Carnivores

Animals that primarily eat other animals for food.

Sensory Adaptation

Slowing or cessation of a sensory receptor’s response to an ongoing stimulus.

Stops Paying Attention

The diversion of focus or concentration away from a task or subject, leading to decreased awareness or responsiveness.

Constant Signals

Signals or messages that are unchanging over time, often used in communication systems or signal processing.