Assuming a Horizontal Aggregate Supply Curve,output Will Change When

question 46

Multiple Choice

Assuming a horizontal aggregate supply curve,output will change when

• A)monetary or fiscal policy changes.
• B)monetary policy changes.
• C)fiscal policy changes.
• D)capital,labor,or technology changes.
• E)all of the above

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Definitions:

Ability-To-Pay Principle

The idea that those who have greater income (or wealth) should pay a greater proportion of it as taxes than those who have less income (or wealth).

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are accessible to all without diminishing availability to others, such as public parks or national defense.

Ability-To-Pay Philosophy

A principle that asserts taxes should be levied based on an individual's or entity's capacity to pay, implying those with higher income or wealth should pay more in taxes.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, imposing higher rates on those with higher incomes.