Consider all the effects of fiscal policy.A cut in the income tax
A) shifts both the SAS and LAS curves rightward but does not shift the AD curve.
B) shifts the AD, SAS, and LAS curves rightward.
C) shifts the LAS curve rightward but does not shift either the AD or SAS curve.
D) shifts the SAS curve rightward but does not shift either the AD or LAS curve.
E) shifts the AD curve rightward but does not shift either the LAS or SAS curve.
Correct Answer:
Verified
Q34: The Laffer curve is the relationship between
A)government
Q35: An income tax cut that provides a
Q36: An increase in income taxes
A)decreases potential GDP
Q37: An increase in income tax _ potential
Q38: A tax cut on capital income
A)does not
Q40: Suppose the tax rate on interest income
Q41: Currently the government of Ricardia has outlays
Q42: Suppose that in China, investment is ¥400
Q43: Currently the government of Ricardia has outlays
Q44: The cyclical deficit
A)exceeds the structural surplus.
B)is a
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