Solved

If the Short-Run Macroeconomic Equilibrium Occurs in the Classical Range

Question 14

Multiple Choice

If the short-run macroeconomic equilibrium occurs in the classical range of the short-run aggregate supply curve, then a decrease in income tax will _____ output and will _____ the price level.


A) not change; decrease
B) increase; not change
C) not change; increase
D) decrease; not change

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q9: Suppose that the United States signs a

Q10: Suppose that a short-run macroeconomic equilibrium occurs

Q11: Which of the following variables is measured

Q12: If the short-run macroeconomic equilibrium occurs in

Q13: Which of the following variables is measured

Q15: Use Figure: Macroeconomic Equilibrium. This figure shows

Q16: If the marginal propensity to consume for

Q17: Which of the following will increase aggregate

Q18: Full employment, or potential output, refers to

Q19: Country A and Country B are identical