Business, 15.04.2021 15:20 Nolanrdavis

Suppose the government reduces the corporate income tax rate. This will increase the return to firms for investing, which should ▼ decrease have no affect on increase investment and cause ▼ a decrease no change an increase in capital in the long run. As a result of the corporate tax cut, the long-run aggregate supply curve will ▼ remain unchanged shift to the left shift to the right . The new long-run equilibrium will be A. where the aggregate demand curve intersects the new long-run aggregate supply curve. B. where the aggregate demand curve intersects the original long-run aggregate supply curve. C. anywhere along the aggregate demand curve. D. anywhere along the original long-run aggregate supply curve. The long-run impact of a reduction in corporate tax rates would be A. an increase in long-run potential output while creating additional upward movements in prices. B. a decrease in long-run potential output while actually reducing inflation.. C. an decrease in long-run potential output while creating additional upward movements in prices. D. an increase in long-run potential output while actually reducing inflation.

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Suppose the government reduces the corporate income tax rate. This will increase the return to firms...