Suppose a Tax Cut Affects Aggregate Demand and Aggregate Supply

question 108

Multiple Choice

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

• A)The shift of aggregate demand, but not the shift of aggregate supply
• B)Both the shift of aggregate demand and 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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Definitions:

Tort Action

A lawsuit seeking to recover damages for a civil wrong that resulted in injury or harm to an individual.

Falsely Alleged

Incorrectly or unjustly accused of something, often without sufficient evidence or just cause.

Contaminated Juice

Juice that has been tainted or polluted, making it unsafe for consumption and potentially harmful.

Appropriating Goods

The act of taking possession of goods or property, often without permission, which may relate to theft or misappropriation issues.