Refer to the graph above. If the economy is in initial equilibrium at AD₁ and AS₁, then from a strict supply-side perspective a cut in taxes or tax rates would produce an equilibrium price and quantity of: A) P₁ and Q₁ B) P₂ and Q₂ C) P₃ and Q₃ D) P₄ and Q₄

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The Answer of Refer to the graph above. If the economy is in initial equilibrium at AD₁ and AS₁, then from a strict supply-side perspective a cut in taxes or tax rates would produce an equilibrium price and quantity of: A) P₁ and Q₁ B) P₂ and Q₂ C) P₃ and Q₃ D) P₄ and Q₄

Refer to the Graph Above