Increasing taxes on business and investment _______ short- run aggregate supply and _______ potential GDP.
A) increases; decreases
B) increases; does not change
C) does not change; does not change
D) decreases; does not change
E) decreases; decreases
Correct Answer:
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Q44: The cyclical deficit
A)exceeds the structural surplus.
B)is a
Q45: A tax on labour income
A)decreases the supply
Q46: If the economy is in an expansion,
Q47: If the economy is in a recession,
Q48: The structural deficit is the deficit
A)that would
Q50: Lowering taxes on employment _ , which
Q51: If the economy is in a recession
Q52: A tax on interest income
A)decreases the supply
Q53: Suppose that in China, investment is ¥400
Q54: Everything else remaining the same, as the
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