Suppose that the us economy is initially in long run


Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. An increase in the corporate income tax rate will lead the U.S. ____ curve to shift and create a(n) ____.

A. Short Run Aggregate Supply; recessionary gap

B. Short Run Aggregate Supply; expansionary gap

C. Aggregate Demand; recessionary gap

D. Aggregate Demand; expansionary gap

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Business Economics: Suppose that the us economy is initially in long run
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