Suppose a Tax Cut Affects Aggregate Demand and Aggregate Supply

question 12

Multiple Choice

Suppose a tax cut affects aggregate demand and aggregate supply.Which of the shifts raise the price level?

• A)both the shift of aggregate demand and the shift of aggregate supply
• B)the shift of aggregate demand,but not the shift of aggregate supply
• C)the shift of aggregate supply,but not the shift of aggregate demand
• D)neither the shift of aggregate demand nor the shift of aggregate supply

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