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Tax Cuts Affect Only Aggregate Demand Not Aggregate Supply

question 133

True/False

Tax cuts affect only aggregate demand not aggregate supply.


Definitions:

Transportation Costs

Expenses incurred in moving goods or materials from one location to another, including shipping fees, freight, and logistics services.

Sales Tax

A tax imposed by a government on the sale of goods and services, usually calculated as a percentage of the retail price.

Ordinary Repair

Expenditures to maintain the operating efficiency and expected productive life of an asset, treated as an expense.

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