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:

Vegetarianism

A dietary lifestyle that excludes meat, and sometimes other animal products, for health, ethical, or environmental reasons.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, social or personal.

Meat-eating

The consumption of animal flesh by humans.

Vegetarian

A person who does not eat meat, and sometimes other animal products, especially for moral, religious, or health reasons.