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What Would Likely Happen to the Long-Run Aggregate Supply Curve

Question 213

Multiple Choice

What would likely happen to the long-run aggregate supply curve if the U.S. federal government decreases marginal tax rates on wages?


A) The LRAS curve would shift rightward.
B) The LRAS curve would shift leftward.
C) The LRAS curve would remain stable while the AD curve would shift leftward.
D) The LRAS curve would remain stable while the AD curve would shift rightward.

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