Multiple Choice
If a tax cut increases people's labor supply, then
A) tax cuts increase potential GDP.
B) tax cuts decrease aggregate demand.
C) tax cuts cannot affect aggregate demand.
D) Both answers A and B are correct.
Correct Answer:
Verified
Related Questions
Q60: A government that currently has a budget
Q61: The U.S. federal budget over the past
Q62: Comparing the U.S. budget position for 2017
Q63: The government begins year 1 with $25
Q64: On January 1, 2013 the income tax
Q66: An increase in taxes on labor income
Q67: Taking account of the supply-side effects, a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents