Question

20nNAt resource/content/1/ECON%2011 20% of potential GOP and a tax on in 06) An income tax on labor income decreases the income decreases the- of potential GOP A) level level B) growth rate growth rate C) level growth rate D) growth rate level E) None of the above มารwers is correct A) increases decreases ) increases increases C) decreases inc D) decreanes decreas E) does not change increnes 08) It fiscal stimulus creates a large buskget then in the long run economk growth A) surplus decra 8) surplus increanes C) deficit increanes D) deficit decreaes None of the above anwers is correct 100 When the economy is in a recension

can you solve 107

Answer 1

Ans) the correct option is B) increases ;increases.

An Income tax cut means the tax has decreased so the income spent on consumption has increased consumption increases which increases aggregate demand. Aggregate supply also increases in the long run because there is an increase in output.