Question
Multiple Choice Question
Raising business taxes shift the Blank______.
Multiple choice question.
long-run aggregate supply curve to the left
aggregate demand curve to the left
short-run aggregate supply curve to the right
aggregate demand curve to the right
Raising business taxes shift the Blank______.
Multiple choice question.
long-run aggregate supply curve to the left
aggregate demand curve to the left
short-run aggregate supply curve to the right
aggregate demand curve to the right
Answers
GPT-4o mini
The correct answer is:
**short-run aggregate supply curve to the left.**
Raising business taxes increases the cost of production for firms, leading to a decrease in supply in the short run, which shifts the short-run aggregate supply curve to the left.
**short-run aggregate supply curve to the left.**
Raising business taxes increases the cost of production for firms, leading to a decrease in supply in the short run, which shifts the short-run aggregate supply curve to the left.