If Tax Rates Are Cut So That People Have an Increased

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.