A Tax Cut _{--------------------}aggregate Demand and _{--------------------}

question 113

Multiple Choice

A tax cut
_{--------------------}aggregate demand and _{--------------------}

• A)increases; shifts the AD curve leftward
• B)decreases; shifts the AD curve rightward
• C)decreases; shifts the AD curve leftward
• D)increases; shifts the AD curve rightward
• E)does not change; does not shift the AD curve

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Definitions:

Self-Serving Bias

The tendency to attribute positive outcomes to one's own character but attribute negative outcomes to external factors.

Negotiating

The process of discussing and arriving at a mutual agreement between parties with different interests.

Positive Illusions

Optimistically biased beliefs about oneself that are not fully grounded in reality, believed to support psychological well-being.

Drinking

the act of consuming liquids, often specifically referring to the intake of alcoholic beverages.