When the economy is strong, tax cuts may shift AD so far to the right as...
When the economy is strong, tax cuts may shift AD so far to the right as to generate inflationary pressures, with little gain to GDP.
True
False
Homework Answers
This statement is true.
It is because when economy is strong or doing well, then tax cut will have greater impact on aggregate demand and shifts the AD curve rightward but due to the slope of AS curve, GDP will have lower impact.
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When the economy is strong, tax cuts may shift AD so far to the
right as...
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ugh there is no time limit except for the due date itself, you may only take this homework Question 1 2 pts...
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Please just help spent the semester in the hospital and apparently have to do an assignment.....
Please just help spent the semester in the hospital and
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ugh there is no time limit except for the due date itself, you may only take this homework Question 1 2 pts According to the class, why does the AD curve have a negative slope? When P rises, people substitute away from more expensive goods and services so AD decreases When P rises, the purchasing power of income falls so AD decreases When Prises, G decreases which means AD decreases When Prises, the suply of money shifts left sor falls...
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Please just help spent the semester in the hospital and
apparently have to do an assignment..
11. Government spending and taxation changes that cause fiscal policy to be expansionary when the economy contracts and contractionary when the economy expands are known as: A) discretionary fiscal policy. B) automatic stabilizers. autonomous spending policies. destabilizing fiscal policies. 12. 4) The government budget balance equals: taxes plus government purchases plus government transfers. taxes minus government purchases minus government transfers. taxes minus government purchases...
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