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Economics Mcqs
Q
According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
AA. Aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
BB. Aggregate supply will increase will increase aggregate output will increase and the price level will decrease
CC. Aggregate supply will increase will increase aggregate output will increase and the price level will increase
DD. Both aggregate supply and demand will increase will increase and the price level will increase
Correct Answer:
B. B. Aggregate supply will increase will increase aggregate output will increase and the price level will decrease