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How Do Permanent Tax Cuts Shift the AD Curve Compared

Question 22

Multiple Choice

How do permanent tax cuts shift the AD curve compared with temporary tax results?


A) Permanent tax cuts shift the AD curve farther to the right than temporary tax cuts do.
B) Permanent tax cuts shift the AD curve less to the right than temporary tax cuts do.
C) Permanent tax cuts shift the AD curve farther to the left than temporary tax cuts do.
D) Permanent tax cuts shift the AD curve less to the left than temporary tax cuts do.

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