Q
Which of the following statements regarding taxes is correct ?
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A
A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
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B
B. An increase in taxes shifts the aggregate demand curve to the right
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C
C. A decrease in taxes shifts the aggregate supply curve to the left
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D
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.
Correct Answer:
D. D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.
