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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 wouldn't change directly, but could influence other GDP factors
The potential output would remain unchanged
The potential output would increase
The potential output would decrease
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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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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
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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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