Fiscal policies such as the recent pay-roll tax cut may, Ask an Expert

Economics

Fiscal policies such as the recent pay-roll tax cut, may result in all of the following, except

as spending increases, aggregate demand will increase.

lower tax rates will give incentive to people to work longer, increasing potential output.

the supply-side effect of the tax cut will decrease aggregate demand.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91235352

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