A Decrease in Business Taxes Will Tend to

question 255

Multiple Choice

A decrease in business taxes will tend to

• A) increase aggregate demand but not change aggregate supply.
• B) increase aggregate supply but not change aggregate demand.
• C) increase aggregate demand and increase aggregate supply.
• D) decrease aggregate supply and decrease aggregate demand.

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Definitions:

Cause

A factor or event that brings about a specific effect, outcome, or result, often examined in contexts of cause and effect relationships.

Positively Correlated

A relationship between two variables where one variable increases as the other also increases.

Height

The measurement of someone or something from head to foot or from base to top.

Weight

A measure of the heaviness of an object, often quantified using units like pounds or kilograms.