QuestionJune 14, 2025

The tax cut of 2001 turned out to be well-timed because it caused a rightward shift of the aggregate demand curve. rightward shift of the aggregate supply curve. leftward shift of the aggregate demand curve. leftward shift of the aggregate supply curve.

The tax cut of 2001 turned out to be well-timed because it caused a rightward shift of the aggregate demand curve. rightward shift of the aggregate supply curve. leftward shift of the aggregate demand curve. leftward shift of the aggregate supply curve.
The tax cut of 2001 turned out to be well-timed because it caused a
rightward shift of the aggregate demand curve.
rightward shift of the aggregate supply curve.
leftward shift of the aggregate demand curve.
leftward shift of the aggregate supply curve.

Solution
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Answer

Rightward shift of the aggregate demand curve. Explanation 1. Identify the Effect of a Tax Cut A tax cut increases disposable income, leading to higher consumer spending. 2. Determine the Impact on Aggregate Demand Increased consumer spending shifts the aggregate demand curve to the right.

Explanation

1. Identify the Effect of a Tax Cut<br /> A tax cut increases disposable income, leading to higher consumer spending.<br /><br />2. Determine the Impact on Aggregate Demand<br /> Increased consumer spending shifts the aggregate demand curve to the right.
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