In the Short Run, Tax Cuts That Are Intended to Increase

question 124

Multiple Choice

In the short run, tax cuts that are intended to increase aggregate supply have

• A)almost no effect on aggregate demand, and a small effect on aggregate supply.
• B)about an equal effect on both aggregate demand and aggregate supply.
• C)a much greater effect on aggregate demand than on aggregate supply.
• D)almost no effect on aggregate supply, and a negative effect on aggregate demand.

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Definitions:

Reinforcement

In psychology, any event that strengthens or increases the likelihood of a specific response or behavior by providing a consequence an individual finds rewarding.

Local Theater

A venue for performing arts in a community, providing a stage for live performances such as plays, musicals, and other theatrical productions.

Positive Reinforcement

A method in behavior science that increases the likelihood of a behavior by following it with a desirable outcome or reward.

Circus Acts

Live performances by acrobats, clowns, and other entertainers typically held in a ring or arena.