Choose the Correct Statement

question 58

Multiple Choice

Choose the correct statement.

• A)Tax cuts increase aggregate supply and aggregate demand.
• B)Tax cuts strengthen the incentive to work and to invest.
• C)The tax multiplier becomes smaller as time passes.
• D)According to Barro and Uhlig, tax cuts are a less powerful way to stimulate real GDP than spending increases.
• E)Both A and B are correct.

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Definitions:

Competitive Environment

describes the external factors that affect a firm's ability to compete in the market, including the number and capability of competitors.

Philanthropy

The act of donating money, goods, services, and time to support causes beneficial to the public good, often aimed at improving welfare and quality of life.

Social Responsibility Pyramid

A theoretical framework suggesting that businesses have multiple layers of responsibilities, ranging from economic, to legal, ethical, and philanthropic duties.

Bottom Level

The lowest tier or position within a hierarchical structure, often referring to entry-level positions in an organization or the base layer of a system.