Suppose the Economy's Current AD and SRAS Curves Intersect to the Right

question 163

Multiple Choice

Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP.Keynesians might advise a policy of tax __________ to shift __________.

• A) increases; SRAS to the left
• B) increases; AD to the left
• C) cuts; SRAS to the right
• D) cuts; AD to the right

---

Definitions:

Building Contractors

Professionals or companies responsible for the construction, repair, or renovation of buildings, overseeing project completion from start to finish.

Monthly Depreciation

The portion of a fixed asset's cost allocated as an expense over a single month, reflecting the asset's usage and loss of value.

Cash Balance

The total amount of cash or cash equivalents a company or individual holds at any given time.

Merchandising Firm

A business that purchases finished goods for the purpose of resale to consumers without altering the condition of the goods.