Assuming an Upward-Sloping Short-Run Aggregate Supply Curve, a Decrease in Taxes

question 118

Multiple Choice

Assuming an upward-sloping short-run aggregate supply curve, a decrease in taxes results in ________ in output and ________ in prices in the short run.

• A) an increase; an increase
• B) a decrease; an increase
• C) a decrease; no change
• D) no change; a decrease

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Definitions:

Empathetic

The ability to understand and share the feelings of another.

Necessary Changes

Adjustments or modifications required to improve a situation, process, or product.

Group Project

A collaborative assignment or task undertaken by a group of people, typically students, aiming to achieve a common objective.

Resilient

The ability to quickly recover from difficulties; emotional strength and toughness.