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Suppose a Tax Cut Affects Aggregate Demand and Aggregate Supply

Question 6

Multiple Choice

Suppose a tax cut affects aggregate demand and aggregate supply.Which of the shifts raise real GDP?


A) both the shift of aggregate demand and the shift of aggregate supply
B) the shift of aggregate demand,but not the shift of aggregate supply
C) the shift of aggregate supply,but not the shift of aggregate demand
D) neither the shift of aggregate demand nor the shift of aggregate supply

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