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5. Suppose the only revenue taken in by the government is in the form of income tax, and the tax rate is 10 percent. If aggregate income is $800 billion, and government outlays are $100 billion, then the government budget has Aya deficit of $20 billion. B) a deficit of $80 billion. C) neither a surplus nor a deficit. D) a surplus of $20 billion. 6. If a tax cut increases people's labor supply, then A) tax cuts cannot affect aggregate demand. B) tax cuts increase potential GDP. C) tax cuts decrease aggregate demand. D) Both answers A and B are correct