MCQOPTIONS
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| 1. |
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 ? |
| A. | aggregate supply will increase , aggregate demand will decrease |
| B. | aggregate supply will increase, aggregate output will increase and the price level will decrease |
| C. | aggregate supply will increase aggregate output will increase and the price level will increase |
| D. | both aggregate supply and demand will increase and the price level will increase |
| Answer» B. aggregate supply will increase, aggregate output will increase and the price level will decrease | |