We would expect a decline in personal and corporate income taxes to:
A) shift the aggregate demand curve rightward.
B) increase consumption and investment spending.
C) increase the real output.
D) do all of the above.

Question

Quizplus · Accepted Answer

A decline in personal and corporate income taxes would increase disposable income of both individuals and corporations, leading to increased consumption and investment spending. This would shift the aggregate demand curve rightward, leading to an increase in real output. Therefore, all of the above options are correct.

We Would Expect a Decline in Personal and Corporate Income