_____ marginal tax rates and _____ are commonly used to increase aggregate supply.

Question

Quizplus · Accepted Answer

Lowering marginal tax rates and offering investment tax credits are both commonly used to incentivize businesses to invest in new projects, expand their operations, and hire more workers. This leads to an increase in aggregate supply, which can help stimulate economic growth. The other options may have opposite effects on aggregate supply - increasing government transfer payments may encourage consumption but do not directly impact supply, and reducing government spending can decrease demand for goods and services, leading to a decrease in supply.

_____ Marginal Tax Rates and _____ Are Commonly Used to Increase

_ Marginal Tax Rates and _ Are Commonly Used to Increase