If a Tax Cut Increases Aggregate Demand More Than Aggregate

question 156

Multiple Choice

If a tax cut increases aggregate demand more than aggregate supply,real GDP ________ and the price level ________.

• A)increases;rises
• B)increases;falls
• C)decreases;rises
• D)decreases;falls
• E)increases;does not change

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Definitions:

Entrepreneurial Organisations

Businesses that are primarily focused on innovation, risk-taking, and proactive strategies to seize market opportunities.

Growth Stage

Represents a phase in the lifecycle of a business or product characterized by rapid revenue and customer base expansion, often accompanied by increasing operational complexities.

First-mover Advantage

The competitive edge gained by a company that first introduces a product or service to the market, capitalizing on the opportunities before others.

Industry

The sector of the economy characterized by the production and manufacture of goods or the provision of services within a particular area of specialization.