INFLATION RATE LRAS AD SRAS REAL GOP GROWTH RATE Suppose a change in fiscal policy causes the AD curve to shift from AD₁ to AD2, as shown above. Which response below would most likely cause that shift? A fall in taxes OR a rise in government spending. A rise in taxes OR a rise in government spending. A rise in taxes OR a fall in government spending. A fall in taxes OR a fall in government spending.

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A: (Q) A tax cut shifts the aggregate demand A. by less than the tax cut. B. by the same amount as…

Q: Of the four government macro policy measures listed below, which one would not shift the AE Curve…

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A: All A,B,C part answers given below,

Q: Instructions: Enter your answer as a whole number. If you are entering a negative number include a…

A: AD has to increase by (480 - 400) = $80 billion.

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Q: 1. The graph below shows the AD-AS diagram for Canada. 1200† 1100+ 1000 900 800 700+ 600 400 » 300 -…

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Q: 2. How does the tax wedge influence potential GDP?

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Q: rèstion 21 points The economy is in a recession. The government enacts a policy to increase the real…

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Q: when equilibrium GDP falls belowpotential, an inflationary gap exists true false

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