Suppose the Economy's Current AD and SRAS Curves Intersect to the Right

question 163

Multiple Choice

Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP.Keynesians might advise a policy of tax __________ to shift __________.

• A) increases; SRAS to the left
• B) increases; AD to the left
• C) cuts; SRAS to the right
• D) cuts; AD to the right

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Definitions:

Making Part

The process or activities involved in the manufacturing or creation of parts or components that are then assembled into final products.

Idle Capacity

The unused portion of a company's production or operational capacity, which indicates that not all resources are being fully utilized.

Financial Advantage

A benefit that gives an individual or business a better financial position compared to others.

Special Discounted Price

This is a temporary reduction in the selling price of goods or services, often used to attract customers or promote sales.