According to the supply-side economists,a cut in the marginal income tax rate would cause

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According to supply-side economists, a cut in the marginal income tax rate would increase the monetary rewards of work, thereby incentivizing individuals to supply more labor, resulting in increased output. Additionally, the reduction in tax rates would lead to an increase in disposable income, thereby increasing consumption and demand for goods and services, further contributing to an increase in output. However, the increase in labor supply may lead to a temporary increase in the price level due to increased demand for labor, but over the long run, supply-side economists argue that increased output would lead to a decrease in the price level. Therefore, labor supply would rise, output would rise, and the price level would fall as a result of a cut in the marginal income tax rate according to supply-side economists.

According to the Supply-Side Economists,a Cut in the Marginal Income