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Macroeconomics

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Moderate

Tax Change Effects on Aggregate Supply

MACRO-VLQS4Y

An increase in the marginal tax rate on savings income will cause

A

the short and long run aggregate supply curves to shift to the right.

B

the short and long run aggregate supply curves to shift to the left.

C

no changes in the short and long run aggregate supply curves.

D

the short run aggregate supply curve to shift to the right, but the long run aggregate supply curve is unchanged.

E

the short run aggregate supply curve to shift to the left, but the long run aggregate supply curve is unchanged.