Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started