A Temporary Tax Cut Would Not Be Effective in Stimulating

question 135

Multiple Choice

A temporary tax cut would not be effective in stimulating aggregate demand if

• A)the tax cut were large
• B)the MPC were relatively high
• C)the economy were in a contractionary gap
• D)the short-run aggregate supply curve were relatively flat
• E)people based consumption decisions on their level of permanent income

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Definitions:

Sexual Revolution

A social movement that challenged traditional codes of behavior related to sexuality and interpersonal relationships throughout the Western world from the 1960s to the 1980s.

Provoked Vestibulodynia

A condition characterized by pain at the entrance to the vagina, triggered by contact or pressure.

Pelvic Floor Physiotherapy

A specialized form of physical therapy aimed at strengthening the muscles of the pelvic floor to treat various conditions such as incontinence or pain.

Intra-cavernous Therapy

A medical treatment often used for erectile dysfunction that involves the direct injection of medication into the base of the penis.