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Suppose a Middle-Class Tax Cut Increases Consumption Expenditures

Question 31

Multiple Choice

Suppose a middle-class tax cut increases consumption expenditures.Which of the following would you expect to occur as a result of this change?


A) The economy will move up and to the left along the short-run Phillips Curve.
B) The economy will move down and to the right along the short-run Phillips Curve.
C) ​The short-run Phillips Curve will shift to the left.
D) ​The short-run Phillips Curve will shift to the right.

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