New classical economists argue that a tax cut does not shift the aggregate demand curve because:...
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New classical economists argue that a tax cut does not shift the aggregate demand curve because: O households increase consumption because they do not know the implications of the tax cut. prices are inflexible, so real GDP does not change. consumers doubt future government debt will have an effect on future taxes. O households reduce their consumption so they can pay afford to pay higher taxes in the future. New classical economists argue that a tax cut does not shift the aggregate demand curve because: O households increase consumption because they do not know the implications of the tax cut. prices are inflexible, so real GDP does not change. consumers doubt future government debt will have an effect on future taxes. O households reduce their consumption so they can pay afford to pay higher taxes in the future.
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Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
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