An income tax cut ________ aggregate demand and ________ aggregate supply.

Name: An income tax cut ________ aggregate demand and ________ aggregate supply.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

An income tax cut increases aggregate demand because consumers have more disposable income to spend. It also can increase aggregate supply by providing more incentives for investment and work, thus potentially increasing productivity and output.

An Income Tax Cut ________ Aggregate Demand and ________ Aggregate

An Income Tax Cut Aggregate Demand and Aggregate