Tax cuts on business income ________ aggregate demand.

Question

Quizplus · Accepted Answer

Tax cuts on business income would increase aggregate demand as businesses would have more money to invest in expansion, hiring, and other activities that boost economic output. This increased economic activity would, in turn, lead to higher demand for goods and services. However, the extent to which aggregate demand increases would depend on various factors such as the size of the tax cut, the responsiveness of businesses to the tax cut, and the overall state of the economy.

Tax Cuts on Business Income ________ Aggregate Demand