Figure 8-6 -Refer to Figure 8-6. Assume That the Economy Is Initially

question 116

Multiple Choice

Figure 8-6
-Refer to Figure 8-6. Assume that the economy is initially in long-run equilibrium. Suppose the federal government initiates a tax program that stimulates firms to increase their investment and this leads to economic growth. This policy might, in the short run, result in

• A) a leftward shift of the aggregate demand and the short-run aggregate supply curve and in the long run, a rightward shift of the long-run aggregate supply curve.
• B) a rightward shift of the aggregate demand curve and in the long run, a rightward shift of the long-run aggregate supply and the short-run aggregate supply curves.
• C) a rightward shift of the short-run aggregate supply curve and in the long run, a rightward shift of the long-run aggregate supply curve.
• D) a leftward shift of the aggregate demand curve and in the long run, a rightward shift of the long-run aggregate supply and the short-run aggregate supply curves.

---

Definitions:

Authentic Voice

A genuine, original, and honest style of expression that reflects the true personality or values of an individual or brand.

Business Bloggers

Writers who create content focusing on topics related to business, entrepreneurship, and industry trends.

Peak Interest

The highest level of curiosity or engagement that an audience or individual has in a topic or activity.

Tags

Keywords or terms assigned to a piece of information (like a webpage, digital image, or file) which help describe the item and allow it to be found again by browsing or searching.