A tax cut increases _______. A. Aggregate demand but has no effect on aggregate supply B. Aggregate

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A tax cut increases _______.

A. Aggregate demand but has no effect on aggregate supply

B. Aggregate demand because it increases disposable income and increases aggregate supply because it is an incentive to supply more labor

C. Aggregate demand because it increases consumption expenditure and decreases aggregate supply because labor productivity falls

D. Aggregate supply but has no effect on aggregate demand

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 22, 2018 01:21 AM

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A tax cut increases _______. A. Aggregate demand but has no effect on aggregate supply B. Aggregate

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B A tax cut in...View the full answer

Foundations of Macroeconomics

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