The supply-side effects show that an income tax cut ________ employment and ________ potential GDP.

Name: The supply-side effects show that an income tax cut ________ employment and ________ potential GDP.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

Supply-side effects suggest that an income tax cut can lead to an increase in employment as it provides more incentives for work, investment, and entrepreneurship. This, in turn, can increase potential GDP by enhancing the productive capacity of the economy.

The Supply-Side Effects Show That an Income Tax Cut ________