The Government of countryA cut taxes.

The AD-AS model predicts that in the short-run, AD curve?

shifts to the left

remains unchanged

shifts to the right

AS curve?

shifts to the left

remains unchanged

shifts to the right

Output in the short-run?

decreases

increases

remains unchanged

and price in the short-run?

remains unchanged

increases

decreases

Compared to the original equilibrium, output in the long-run?

increases

decreases

remains unchanged

and pricein the long-run equilibrium?

remains unchanged

decreases

increases