Other Things Equal, a Reduction in Personal and Business Taxes

question 123

Multiple Choice

Other things equal, a reduction in personal and business taxes can be expected to

• A) increase aggregate demand and decrease aggregate supply.
• B) increase both aggregate demand and aggregate supply.
• C) decrease both aggregate demand and aggregate supply.
• D) decrease aggregate demand and increase aggregate supply.

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Definitions:

Urethra

(urethra) The tube that conducts urine from the bladder to the outside of the body.

Specialized Epithelium

Epithelial tissues that have specific functions and adaptations, such as those in the lining of the gut or the respiratory system.

Urinary Bladder

An organ that receives urine from the ureters and temporarily stores it.

Smooth Muscle

A type of muscle tissue that is not under conscious control and is found in the walls of hollow organs like the intestines and blood vessels.