Increasing Taxes on Business and Investment ________ Short-Run Aggregate Supply

question 14

Multiple Choice

Increasing taxes on business and investment ________ short-run aggregate supply and ________ potential GDP.

• A)increases; does not change
• B)decreases; does not change
• C)decreases; decreases
• D)does not change; does not change
• E)increases; decreases

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Definitions:

Pastrami

A delicacy of highly seasoned, smoked, and cooked beef or sometimes turkey, popular in deli cuisine.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, widely consumed by humans either directly or as dairy products.

Total Production

The complete quantity of goods and services produced in an economy during a specific time period.

Constant Rate

A steady, unchanging value or speed at which something occurs or is applied over time.