The Long-Run Aggregate Supply Curve Shifts Right at the Same

question 232

Multiple Choice

The long-run aggregate supply curve shifts right at the same time as

• A)the Laffer curve shifts upward.
• B)the production possibilities curve shifts outward.
• C)the production possibilities curve shifts inward.
• D)the inflation rate increases.

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and time.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations must pay to the government, often aimed at stimulating economic growth or achieving policy goals.

Legislation

Laws that have been passed by a governing body or legislature.

Aggregate Demand

The all-inclusive demand for goods and services within an economy, set at a definite price level and over a specific duration.