Suppose a Tax Cut Affects Aggregate Demand and Aggregate Supply

question 6

Multiple Choice

Suppose a tax cut affects aggregate demand and aggregate supply.Which of the shifts raise real GDP?

• A)both the shift of aggregate demand and the shift of aggregate supply
• B)the shift of aggregate demand,but not the shift of aggregate supply
• C)the shift of aggregate supply,but not the shift of aggregate demand
• D)neither the shift of aggregate demand nor the shift of aggregate supply

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Definitions:

Food Source

Any substance consumed to provide nutritional support to an organism.

Danger Avoidance

Danger avoidance refers to behaviors or actions taken to evade potential threats or harmful outcomes.

Flavor Enhancement

The process of improving or intensifying the taste or aroma of food and drink products through the addition of ingredients or alteration of preparation methods.

Odorants

Chemical substances that are perceived by the sense of smell.