A permanent marginal tax decrease is likely to
A) shift the short-run aggregate supply curve to the left and the long-run aggregate supply curve to the right.
B) shift both the short-run and the long-run aggregate supply curves to the left.
C) shift the short-run aggregate supply curve to the right,and the long-run aggregate supply curve to the left.
D) shift both the short run and the long run aggregate supply curves to the right.
Correct Answer:
Verified
Q80: Q81: An example of expansionary fiscal policy is Q82: The transmission lag is the time between Q83: If an economist recommends that the government Q84: When a decrease in one or more Q86: The effectiveness lag is the time between Q87: Some economists believe that higher marginal income Q88: The data lag is the time between Q89: An example of contractionary fiscal policy is Q90: To eliminate an inflationary gap,Keynesian theory indicates
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