Stimulate production by reducing the taxes on businesses

Assignment Help Business Economics

Reference no: EM133637639

Question

Assume that the government decides to stimulate production by reducing the taxes on businesses. How does this policy action affect the short-run aggregate supply curve and the aggregate output? (2 points) The short-run aggregate supply curve shifts rightward, increasing the aggregate output. The short-run aggregate supply curve shifts leftward, increasing the aggregate output. The short-run aggregate supply curve shifts rightward, decreasing the aggregate output. The short-run aggregate supply curve does not change because of the wage and price rigidity assumption. The short-run aggregate supply curve shifts leftward, decreasing the aggregate output.

Reference no: EM133637639

Questions Cloud

Explain the trade-offs that you faced : Identify and explain the trade-offs that you faced. List the alternatives you had, identify the highest valued alternative, and explain your final decision.

What is the hyphotesis the this phrase amateur : What is the hyphotesis the this phrase Amateur night at the Apollo Theater attracted not only Harlem's African American population but a national radio audience

What is the open unemployment rate : What is the open unemployment rate? What is the labor force participation rate?

Examples of chaplins commentary of industrial revolution : What are some examples of Chaplin's commentary of the Industrial Revolution in the film? What were some of your favorite scenes?

Stimulate production by reducing the taxes on businesses : Assume that the government decides to stimulate production by reducing the taxes on businesses.

Define what it means for a group of people in society : Define what it means for a group of people in society to have power. Each group had power- what was the source? How did the arts highlight the differences

Cost of borrowing to purchase goods and services increases : When the cost of borrowing to purchase goods and services increases, the quantity demanded for those goods and services will generally decrease.

Write things that happened yesterday in french : Write things that happened yesterday in french What was the weather? did you do anything fun? What can we write about this

What is the myth of jacksonian democracy : What is the Myth of Jacksonian Democracy ? What role does image or myth making play in the study of history ?

User Account

All Pages