The Short-Run Aggregate Supply Curve Will Shift to the Left

question 38

Multiple Choice

The short-run aggregate supply curve will shift to the left when:

• A) Phillips curve expectations rise.
• B) Phillips curve expectations fall.
• C) inflation expectations rise.
• D) inflation expectations fall.

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Definitions:

AGI Floor

A threshold based on a taxpayer's adjusted gross income (AGI) that limits the deductibility of certain expenses.

Professional Dues

Fees paid to a professional organization or union that the member may be able to deduct on their tax return.

Medical Expense Deduction

A tax deduction for expenses related to the diagnosis, cure, mitigation, treatment, or prevention of disease.

Adjusted Gross Income

Gross income minus adjustments, used to determine taxable income on an individual's tax return.