In an Aggregate Demand-Aggregate Supply Framework, Fiscal Policy That Emphasizes

question 135

Multiple Choice

In an aggregate demand-aggregate supply framework, fiscal policy that emphasizes cutting taxes as a means of improving incentives to work, save, and invest would be characterized primarily as a:

• A) Rightward shift of the aggregate demand curve
• B) Leftward shift of the aggregate demand curve
• C) Rightward shift of the long-run aggregate supply curve
• D) Leftward shift of the long-run aggregate supply curve

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