In the short term,a decrease in taxes will have what effect on GDP and unemployment?
A) It will reduce unemployment and reduce GDP.
B) It will reduce unemployment and raise GDP.
C) It will raise unemployment and raise GDP.
D) It will raise unemployment and reduce GDP.

Question

Quizplus · Accepted Answer

A decrease in taxes provides more disposable income, which stimulates spending and increases GDP, thereby reducing unemployment.

In the Short Term,a Decrease in Taxes Will Have What