If Households View a Tax Cut as Temporary, Then the Tax

question 56

Multiple Choice

If households view a tax cut as temporary, then the tax cut

• A)has no effect on aggregate demand.
• B)has more of an effect on aggregate demand than if households view it as permanent.
• C)has the same effect as when households view the cut as permanent.
• D)has less of an effect on aggregate demand than if households view it as permanent.

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Definitions:

Fruit Pickers

Individuals who harvest fruit crops, often working seasonally and moving locations based on harvest times.

Union Strong

Refers to the robustness and effectiveness of labor unions in advocating for workers' rights and negotiating better wages and working conditions.

Real Wages

Wages adjusted for inflation, reflecting the purchasing power of income received for work.

Labor Unions

Organizations formed by workers from related fields that work for the mutual benefit of its members to negotiate wages, working conditions, benefits, and other employment terms with employers.