3762EconomicsMedium
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?
Aboth aggregate supply and demand will increase will increase and the price level will increase
Baggregate supply will increase will increase aggregate output will increase and the price level will increase
Caggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
Daggregate supply will increase will increase aggregate output will increase and the price level will decrease
Correct answer
D. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
Explanation
The correct answer is aggregate supply will increase will increase aggregate output will increase and the price level will decrease.