How Do Permanent Tax Cuts Shift the AD Curve Compared

question 22

Multiple Choice

How do permanent tax cuts shift the AD curve compared with temporary tax results?

• A) Permanent tax cuts shift the AD curve farther to the right than temporary tax cuts do.
• B) Permanent tax cuts shift the AD curve less to the right than temporary tax cuts do.
• C) Permanent tax cuts shift the AD curve farther to the left than temporary tax cuts do.
• D) Permanent tax cuts shift the AD curve less to the left than temporary tax cuts do.

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Definitions:

Positive Reinforcement

The act of encouraging a desired behavior by offering a reward or positive outcome when the behavior is performed.

Common Misconceptions

Refers to widely held but incorrect beliefs or ideas about a topic or concept.

Positive Person

Describes an individual who maintains an optimistic outlook and focuses on the good in situations.

Negativity

A tendency to focus on the undesirable aspects of a situation or to expect the worst outcome.