Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 9

A personal income tax cut, combined with a reduction in corporate income and excise taxes, would:
A) increase consumption, investment, aggregate demand, and aggregate supply.
B) reduce productivity, raise input prices, and reduce aggregate supply.
C) increase government spending, reduce net exports, and increase aggregate demand.
D) increase the supply of money, reduce interest rates, increase investment, and expand real output.