When the government cuts taxes,
A. the aggregate demand curve shifts to the left.
B. the short-run aggregate supply curve shifts to the left.
C. the aggregate demand curve shifts to the right.
D. the long-run aggregate supply curve shifts to the left.
Answer: C
You might also like to view...
What effect does a price hike have on the total revenue of the producers?
What will be an ideal response?
The Santa Fe Spark Plug Company supplies spark plugs to automotive parts dealers. An increase in the demand for its product led Santa Fe to hire 150 new workers
Santa Fe also plans to expand the capacity of its plant but this project will take 2 years to complete. Which of the following statements is true? A) The long run for Santa Fe is longer than 1 year. B) The wages and benefits paid to the new workers are implicit costs. C) In the short run Santa Fe's variable costs increase but its fixed costs decrease. D) The short run for Santa Fe is 1 year.
Price discrimination that tends to lessen competition is outlawed by the:
a. Sherman Antitrust Act. b. Clayton Act. c. Federal Trade Commission Act. d. Interstate Commerce Act.
The "urban consumers" that the CPI is based on includes anyone living in a city of:
A. 2,500 or more. B. 50,000 or more. C. 100,000 or more. D. 150,000 or more.