Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand. A) decrease; decrease...
Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand.
A) decrease; decrease B) decrease; increase
C) increase; decrease D) increase; increase
Homework Answers
Answer is D. Increase; increass.
Tax reduction will increase the disposable income of people so with higher income demand will also be higher and Tax simplification is associated with efficiency of the tax system so increase in efficiency will increase the production or aggregate supply.
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Tax reduction and simplification should ________ long-run
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