A tax cut intended to increase aggregate demand is an example of

Question

Quizplus · Accepted Answer

A tax cut intended to increase aggregate demand is an example of fiscal stimulus, as it is a deliberate effort to increase government spending or reduce taxes in order to boost demand and stimulate economic growth. Fiscal restraint, on the other hand, involves reducing government spending or increasing taxes to reduce demand and slow down the economy. Monetary restraint refers to policies aimed at reducing the money supply, while fiscal targeting involves setting specific goals for government spending or taxation that correspond to specific economic targets.

A Tax Cut Intended to Increase Aggregate Demand Is an Example