In the Basic Keynesian Model, a Tax Cut

question 126

Multiple Choice

In the basic Keynesian model, a tax cut:

• A)reduces short-run equilibrium output.
• B)increases short-run equilibrium output.
• C)reduces potential output.
• D)increases potential output.

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Definitions:

Obverses

In logic, statements that are logically equivalent but expressed in inverse form, typically through negation or contraposition.

Relationship

The process by which two or more ideas, objects, or individuals are related, or the status of having a relationship.

Contradictories

Statements that cannot both be true or both be false at the same time.

Contraries

Statements or propositions that cannot both be true at the same time, but can both be false.