In the aggregate expenditures model, a tax cut causes a(n):
A. upward shift in the aggregate expenditures curve.
B. downward shift in the aggregate expenditures curve.
C. leftward movement along the aggregate expenditures curve.
D. rightward movement along the aggregate expenditures curve.
Answer: A
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A) 8 percent B) 7 percent C) 6 percent D) 5 percent E) 9 percent
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A. Panel A B. Panel B C. Panel C D. Panel D
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