Consider All the Effects of Fiscal Policy

question 2

Multiple Choice

Consider all the effects of fiscal policy. A cut in the income tax

• A)shifts the AD curve rightward but does not shift either the LAS or SAS curve.
• B)shifts the AD, SAS, and LAS curves rightward.
• C)shifts the SAS curve rightward but does not shift either the AD or LAS curve.
• D)shifts both the SAS and LAS curves rightward but does not shift the AD curve.
• E)shifts the LAS curve rightward but does not shift either the AD or SAS curve.

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Definitions:

Eighteenth-Century New York

A period marking New York's development from a small colonial outpost to a significant urban center in the 1700s.

Hudson Valley

A geographical area in New York State, known for its history, natural beauty, and as a significant site during the American Revolutionary War.

Enslaved People

Individuals who are forced into servitude against their will, deprived of personal freedom, and compelled to work without rightful compensation.

Cash Crop

A crop grown for its commercial value rather than for use by the grower.