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:

Biological

Pertaining to the physiological and genetic aspects of organisms and their functions.

Basic Approach

A fundamental method or strategy applied to understand, analyze, or address problems.

Pigeonholing

The act of classifying or categorizing people or things simplistically into fixed and often unfair categories.

Basic Approaches

Refer to foundational methods or strategies in a field of study.