Multiple Choice
Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q293: Figure 16-8 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 16-8
Q294: The total value of U.S.Treasury bonds outstanding
Q295: A change in consumption spending caused by
Q296: Table 16-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Table 16-4
Q297: Fiscal policy actions that are intended to
Q299: If the absolute value of the tax
Q300: A decrease in the marginal income tax
Q301: The double taxation problem occurs because households
Q302: Contractionary fiscal policy to prevent real GDP
Q303: A permanent tax cut would likely _