If Everyone Expects Prices to Fall but They Do Not,then

question 53

Multiple Choice

If everyone expects prices to fall but they do not,then

• A)nothing happens.
• B)the IS curve shifts to the left and the AD curve shifts to the right.
• C)both IS and AD shift to the right.
• D)both IS and AD shift to the left.
• E)the IS curve shifts to the right,the AD curve shifts to the left.

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Definitions:

Personal Income Tax Revenue

The income generated by the government through the taxation of individuals' earnings.

Earners

Individuals or entities that receive income through work or investments.

Marginal Tax Rates

The tax rate that applies to each additional dollar of income.

High-Income Taxpayers

Individuals who earn income above a certain threshold and are often subject to higher tax rates or additional taxes.