The American Recovery and Reinvestment Act passed in February 2009 was the largest measure of discretionary fiscal policy in US history

The reduction of a tax

a. could increase tax revenue if the tax had been extremely high b. will always reduce tax revenue regardless of the prior size of the tax c. will have no impact on tax revenue d. causes a market to become less efficient

The long-run aggregate supply curve (LRAS) is: a. a vertical curve that relates the level of real GDP produced to the price level in the long run

b. an upward sloping curve that relates the level of real GDP produced to the price level in the long run. c. an infinite curve that relates the level of real GDP produced to the price level in the long run. d. none of the above are true.