How will output and inflation in both the short run and the long run be affected if the effects of the tax cuts are stronger on long-run aggregate supply than on aggregate demand?
Both the Y* (potential output) and AD curves will shift to the left, so output will fall and inflation will be higher.
The Y* (potential output) curve will shift to the right less than the AD curve, so output will increase and inflation will be higher.
The Y* (potential output) curve will shift to the right more than the AD curve, so output will increase and inflation will be lower.
The Y* (potential output) curve will shift to the right and the AD curve will shift to the left, so output will be the same and inflation will be lower.