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AP Macroeconomics
Unit 3 – National Income and Price Determination
Topic 3.4
If the government gave tax incentives to invest in capital or technology, how would this affect the potential output?
The potential output would increase
The potential output wouldn't change directly, but could influence other GDP factors
The potential output would decrease
The potential output would remain unchanged
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AP Macroeconomics - 3.4 Long-Run Aggregate Supply (LRAS)
Key terms
Capital
Potential output
Technology
Invest
Tax incentives
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Resources
Cram Mode
AP Score Calculators
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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