A tax cut intended to increase aggregate demand is an example of

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Quizplus · Accepted Answer

A tax cut intended to increase aggregate demand is an example of fiscal stimulus, as it is a government policy aimed at boosting economic activity by increasing consumers' purchasing power and business investment. Fiscal restraint refers to policies that reduce government spending or increase taxes to lower inflation, while monetary restraint involves increasing interest rates to curb inflation. Fiscal targeting refers to policies aimed at achieving specific economic goals, such as reducing unemployment or increasing economic growth.

A Tax Cut Intended to Increase Aggregate Demand Is an Example