Which of the Following Would Cause Prices to Fall and Output

question 39

Multiple Choice

Which of the following would cause prices to fall and output to rise in the short run?

• A)short-run aggregate supply shifts right
• B)short-run aggregate supply shifts left
• C)aggregate demand shifts right
• D)aggregate demand shifts left

Understand the benefits principle of taxation and its application.

Comprehend the concept of marginal vs. average tax rates.

Analyze the implications of using specific taxes for public finance.

Understand the theory of tax incidence known as the flypaper theory.

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Definitions:

Solute

A dissolved substance.

Phagocytosis

“Cell eating”; type of receptor-mediated endocytosis in which a cell engulfs a large solid particle such as another cell.

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

Foreign Particles

Tiny, extraneous substances not naturally part of a system, often causing harm or disruption.