Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand.
A)increase; increase
B)increase; decrease
C)decrease; increase
D)decrease; decrease

Question

Quizplus · Accepted Answer

Tax reduction and simplification typically increase long-run aggregate supply by making more resources available for investment and consumption. They also tend to increase aggregate demand by increasing disposable income, leading to higher spending.

Tax Reduction and Simplification Should ________ Long-Run Aggregate Supply and ________

Tax Reduction and Simplification Should Long-Run Aggregate Supply and