1092EconomicsMedium
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?
Aaggregate supply will increase, aggregate demand will decrease
Baggregate supply will increase, aggregate output will increase and the price level will decrease
Cboth aggregate supply and demand will increase and the price level will increase
Daggregate supply will increase aggregate output will increase and the price level will increase
Correct answer
A. aggregate supply will increase, aggregate demand will decrease
Explanation
The correct answer is aggregate supply will increase, aggregate demand will decrease.