Suppose a tax cut affects aggregate demand and aggregate supply. Which of the shifts raise real GDP?
a. both the shift of aggregate demand and the shift of aggregate supply
b. the shift of aggregate demand, but not the shift of aggregate supply
c. the shift of aggregate supply, but not the shift of aggregate demand
d. neither the shift of aggregate demand nor the shift of aggregate supply
a
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When the misery index is used to judge macroeconomic conditions, reducing inflation by one percentage point
A) has no effect at all on how we judge the economy's performance. B) is of less benefit to the economy than reducing the unemployment rate by one percentage point. C) gives the same benefit to the economy as reducing the unemployment rate by one percentage point. D) is of greater benefit to the economy than reducing the unemployment rate by one percentage point.
____ is a doctrine that holds that exports are good for a country, whereas imports are harmful
a. Supply-side economics b. Mercantilism c. Free trade d. Monetarism