Multiple Choice
Suppose that a presidential candidate who promised large personal income tax cuts is elected. Which outcome is MOST likely?
A) a decrease in short-run aggregate supply
B) a decrease in aggregate demand
C) an increase in short-run aggregate supply
D) an increase in aggregate demand
Correct Answer:

Verified
Correct Answer:
Verified
Q13: The short-run aggregate supply curve is positively
Q14: The negative relationship between the aggregate price
Q15: Use the following to answer questions:<br>Figure: Aggregate
Q16: An economic policy maker would rank a
Q17: Potential output:<br>A) is the level of output
Q19: When short-run aggregate supply increases, it means
Q20: The short-run aggregate supply curve slopes upward
Q21: The aggregate demand curve would NOT shift
Q22: As an inflationary gap self-corrects, the equilibrium
Q23: The aggregate supply curve shows the relationship