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If an economy is at full employment, an income tax cut will result in: X G) A. an increase in LRASand economic growth. 0 B.

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If an economy is at full employment, an income tax cut will result in: X G) A. an increase in LRASand economic growth. 0 B. an increase in AD and increased output in the long run. 0 C. a decrease in AD and an increase in capacity. 0 D. a higher price level and more output in the short run, but only a higher price level in the long run. 0 E. a higher price level and more output in the short run, but only higher output in the long run. X Incorrect

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