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-Refer to the Figure Above

Question 10

Multiple Choice

-Refer to the Figure above.Suppose the government decreases tax rates dramatically in order to decrease the level of employment.We would expect to see aggregate demand shift to the A) left and a move up the short run Phillips curve. B) left and a move down the short run Phillips curve. C) right and a move up the short run Phillips curve. D) right and a move down the short run Phillips curve.
-Refer to the Figure above.Suppose the government decreases tax rates dramatically in order to decrease the level of employment.We would expect to see aggregate demand shift to the


A) left and a move up the short run Phillips curve.
B) left and a move down the short run Phillips curve.
C) right and a move up the short run Phillips curve.
D) right and a move down the short run Phillips curve.

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