In the Basic Keynesian Model,a Tax Cut

question 169

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.
• E) moves short-run equilibrium output to potential output.

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Definitions:

Semiannually

Occurring or calculated twice a year.

Stock Dividend

A stock dividend is a dividend payment made to shareholders in the form of additional shares rather than a cash payout, affecting the company's share price and equity structure.

Journal Entry

A journal entry is a recording of a financial transaction in the accounting records of a business, indicating debts and credits to various accounts.

Realizing A Loss

Realizing a loss occurs when an asset is sold for less than its purchase price or book value, officially recognizing the loss in financial records.