Suppose the government decides to introduce a general sales tax on good and service.
How will the general price level and aggregate output change in the short run?Explain your answer with AS-AD model.
Ans:cost of production rise => supply decrease
So price level rise , Y decrease
Why only the SAS curve shift to right ?
How about the AD curve ? Government revenue is changed
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本帖最後由 sinbun2003 於 2011-9-21 12:47 AM 編輯 ]