1.What would be the effect of each of the following on aggregate demand or on aggregate supply,...

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1.What would be the effect of each of the following on aggregate demand or on aggregate supply, as indicated (always holding other things constant)?

a. A large cut in personal and business taxes (on AD )

b. An arms-reduction agreement reducing defense spending (on AD )

c. An increase in potential output (on AS )

d. A monetary loosening that lowers interest rates (on AD )

Related Book For answer-question

Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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Posted Date: Mar 04, 2021 04:54 AM

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1.What would be the effect of each of the following on aggregate demand or on aggregate supply,...

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a When there is a massive cut in taxes due to the cut in business and personal taxes th... View the full answer

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