Multiple Choice
If a tax cut increases people's labour supply, then
A) tax cuts increase potential GDP.
B) tax cuts cannot affect aggregate demand.
C) tax cuts decrease aggregate demand.
D) Both answers A and B are correct.
Correct Answer:
Verified
Related Questions
Q22: Tax revenues
A)are fixed over time.
B)are autonomous.
C)are independent
Q23: Looking at the supply- side effects on
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