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:

Theoretical Approaches

Frameworks or models that offer explanations for complex phenomena by outlining key principles and variables.

Crime

An action or omission that constitutes an offense and is punishable by law.

Law

A set of regulations established and implemented by social or governmental bodies to govern conduct.

Classical Criminology

A school of thought in criminology that views behavior as stemming from free will, demands accountability and responsibility, and stresses the importance of deterrence.