Supply-siders ignore the effects of tax cuts on a, aggregate supply. b. aggregate demand. c, aggregate demand and aggregate supply. d.none of these . Give explanation for answer
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Supply-siders ignore the effects of tax cuts on
a, aggregate
b. aggregate demand.
c, aggregate demand and aggregate supply.
d.none of these .
Give explanation for answer
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- During recessions, taxes tend to a. rise and thereby increase aggregate demand. b. fall and thereby decrease aggregate demand. c. fall and thereby increase aggregate demand. d. rise and thereby decrease aggregate demand.What effect does an increase in government spending have on the aggregate demand curve in an economy? A. The aggregate demand curve shifts to the left. B. The aggregate demand curve becomes steeper. C. The aggregate demand curve shifts to the right. D. The aggregate demand curve becomes flatter.If taxes are lowered, we can expect supply-side economists to support the decision to do so because a. government revenues will increase in the long run. b. government spending will decrease in the long run. c. the government will spend more in the short run. d. economic growth cannot occur without it.
- A cut in personal taxes on households’ income: A shifts the aggregate demand curve to the left. B. shifts the aggregate demand curve to the right. C. moves the economy along the aggregate demand curve . D. has no effect.If the government decreases taxes this will shift the aggregate demand curve by government spending for goods and services and has a than a change in effect on real GDP. Select one: a. less; smaller b. more; smaller O c. less; larger d. more; largerWhich of the following can tax cuts influence? a. aggregate demand and aggregate supply b. aggregate demand but not aggregate supply c. aggregate supply but not aggregate demand d. neither aggregate demand nor aggregate supply
- If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur? A. Aggregate demand will be unchanged. B. Aggregate demand will increase. C. Interest rates will decrease. D. The money supply will decrease.Fiscal drag is where Select one: a.there is a lag in government spending having any effect. b.increases in nominal wages push taxpayers up tax brackets. c.increases in government spending hold back economic growth. d.taxpayers look for ways to avoid paying tax they perceive is unfair.Tax cuts shift aggregate demand A. right as do increases in government spending. B. left while increases in government spending shift aggregate demand right. C. left as do increases in government spending. D. right while increases in government spending shift aggregate demand left.
- Tax Policy Suppose the economy is operating at potential GDP. Then the federal government decides to implement a large tax cut. In the long run, the change in price expectations created by the tax cut shifts aggregate demand right. aggregate demand left. aggregate supply right. aggregate supply left.To decrease output the government could adopt policies that :Select one a. increase aggregate supply and decrease .aggregate demand b. decrease aggregate supply and .aggregate demand c. decrease aggregate supply and increase .aggregate demand d. increase aggregate supply and aggregate .demandOne way that the government can increase aggregate demand is by: A. reducing income taxes. B. increasing the interest rates. C. reducing government spending. D. increasing business taxes.
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