If Taxes Are Cut,there Is

question 251

Multiple Choice

If taxes are cut,there is

• A)an increase in aggregate demand and the AD curve shifts rightward.
• B)a decrease in aggregate demand and the AD curve shifts leftward.
• C)an increase in the quantity of real GDP demanded and a movement up along the AD curve.
• D)a decrease in the quantity of real GDP demanded and a movement down along the AD curve.
• E)no change in aggregate demand,only a change in potential GDP.

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Definitions:

Automatization

The process by which a task becomes automatic after extensive practice, requiring little to no cognitive effort to perform.

Phenomenon

An observable event or fact, especially one that is not fully understood.

Means-End Analysis

A problem-solving strategy in which you continually evaluate the difference between your current state and your goal, and consider how to use your resources to reduce the difference.

Subroutines

In problem solving, specific procedures for solving familiar, welldefined problems.