question archive According to Keynesian economics, a tax cut will _____________ aggregate demand and output by _______________ a)increase; decreasing exports b)increase; increasing income and consumption c)increase; decreasing government spending d)decrease; decreasing incentives to work and save
According to Keynesian economics, a tax cut will _____________ aggregate demand and output by _______________ a)increase; decreasing exports b)increase; increasing income and consumption c)increase; decreasing government spending d)decrease; decreasing incentives to work and save
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According to Keynesian economics, a tax cut will _____________ aggregate demand and output by _______________
a)increase; decreasing exports
b)increase; increasing income and consumption
c)increase; decreasing government spending
d)decrease; decreasing incentives to work and save
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Option (b) " increase; increasing income and consumption " is a correct answer.
Step-by-step explanation
According to Keynesian economics, a tax cut will increase aggregate demand and output by increasing income and consumption.
Keynesian economics is a form of demand-side economics that encourages government action to increase and decrease demand and output.
