Multiple Choice
Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect.Compared to no supply-side effect,including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________.
A) less; less
B) less; more
C) more; less
D) more; more
Correct Answer:
Verified
Correct Answer:
Verified
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