Suppose a Tax Cut Affected Aggregate Demand and Aggregate Supply

question 1

Multiple Choice

Suppose a tax cut affected aggregate demand and aggregate supply.The shift in aggregate supply would make the

• A)price level and real GDP change by more than otherwise.
• B)price level change by more than otherwise and real GDP change by less than otherwise.
• C)price level change by less than otherwise and real GDP change by more than otherwise.
• D)price level and real GDP change by more than otherwise

---

Definitions:

Eusocial Animals

Animals that live in complex social structures, including cooperative care of the young, division of labor, and, often, overlapping generations within a colony.

Multigenerational

Involving or affecting several generations of a family or species.

Sterile Workers

In social insects (like ants, bees, and termites), these are individuals that do not reproduce but work for the colony by performing tasks such as foraging, building, or defending.

Species

The fundamental category in taxonomy, referring to a group of closely related organisms that can interbreed and produce fertile offspring.