If Tax Rates Are Cut So That People Have an Increased

question 231

Multiple Choice

If tax rates are cut so that people have an increased incentive to work and businesses have an increased incentive to invest,

• A) aggregate supply will increase, aggregate output will increase, and the price level will increase.
• B) aggregate supply will increase, aggregate output will increase, and the price level will decrease.
• C) both aggregate supply and demand will increase, aggregate output will increase, and the price level will increase.
• D) aggregate supply will increase, aggregate demand will decrease, aggregate output will increase, and the price level will decrease.

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Definitions:

Multiple Times

Refers to conducting or repeating a process or measurement on several occasions to ensure accuracy or reliability.

T Value

A value derived from a T-test, used to determine the significance of differences between two sample means.

Independent Samples

Two or more groups of observations that are collected from separate populations and are not related or connected in any way.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of making a Type I error.