Use the Table Below to Answer the Following Question

question 78

Multiple Choice

Use the table below to answer the following question.
Table 26.3.2

-Refer to Table 26.3.2. The International Monetary Fund's World Economic Outlook database provides the data given in the table for India in 2004, 2005 and 2006. The numbers in the table are consistent with

• A)increases in long-run and short-run aggregate supply and even greater increases in aggregate demand.
• B)increases in short-run aggregate supply and increases in aggregate demand, but the increases in aggregate demand are smaller than the increases in short-run aggregate supply.
• C)increases in long-run and short-run aggregate supply and even larger decreases in aggregate demand.
• D)decreases in long-run and short-run aggregate supply and even greater decreases in aggregate demand.
• E)increases in short-run aggregate supply and no change in aggregate demand.

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Definitions:

Provincial Tax Rates

The income tax rates levied by a province on individuals and businesses, which vary depending on the province and income level.

Average Provincial Tax Rate

The Average Provincial Tax Rate is the average rate of tax imposed by a province on income, which can vary depending on the income level and specific province.

Average Tax Rate

The ratio of total taxes paid to total income, representing the percentage of income paid in taxes.

Capital Gains

The profit earned from the sale of an asset that has increased in value over the holding period, subject to taxation.