Consider All the Effects of Fiscal Policy

question 2

Multiple Choice

Consider all the effects of fiscal policy. A cut in the income tax

• A)shifts the AD curve rightward but does not shift either the LAS or SAS curve.
• B)shifts the AD, SAS, and LAS curves rightward.
• C)shifts the SAS curve rightward but does not shift either the AD or LAS curve.
• D)shifts both the SAS and LAS curves rightward but does not shift the AD curve.
• E)shifts the LAS curve rightward but does not shift either the AD or SAS curve.

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Definitions:

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsiveness.

Cognitive Aptitude

The ability to process information, learn quickly, and solve problems, often considered a measure of intellectual capabilities.

Perceptive Set

A psychological framework that influences observation and interpretation, predisposing an individual to perceive things in a certain way.

Empathy Capacity

The ability of an individual to understand and share the feelings of another person.