A tax cut shifts aggregate demand
a. by more than the amount of the tax cut.
b. by the same amount as the tax cut.
c. by less than the tax cut.
d. None of the above is necessarily correct.
d
You might also like to view...
New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital
Indicate whether the statement is true or false
Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will be paid by the hour. Under this contract,
A) production efficiency is not achieved. B) the client bears all of the risk. C) the lawyer has an incentive to lie about his hours worked. D) All of the above.
If autonomous investment decreases by $60 billion, equilibrium real GDP demanded will
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. A profit-maximizing firm will use an input up to the point where the cost of the input equals the marginal revenue received by the firm. 2. Marginal cost is the additional cost created by the next, or marginal unit of the variable input. 3. Net income represents the accountant's version of after-tax profits.