Multiple Choice
In the short run, tax cuts that are intended to increase aggregate supply have
A) almost no effect on aggregate demand, and a small effect on aggregate supply.
B) about an equal effect on both aggregate demand and aggregate supply.
C) a much greater effect on aggregate demand than on aggregate supply.
D) almost no effect on aggregate supply, and a negative effect on aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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