After the Kennedy tax cut in 1964, real GDP:
A) fell and unemployment rose.
B) rose and unemployment fell.
C) and unemployment both rose.
D) and unemployment both fell.

Question

Quizplus · Accepted Answer

The Kennedy tax cut in 1964 was designed to stimulate economic growth and increase consumer spending. As a result, real GDP rose as businesses expanded and hired more workers to meet demand. This led to a reduction in unemployment, as more people were able to find work. Therefore, the best choice is B, which states that real GDP rose and unemployment fell.

After the Kennedy Tax Cut in 1964, Real GDP