If Government Cuts Taxes ________

Multiple Choice

If government cuts taxes ________.

A) after tax income should increase shifting AD to the left to a lower equilibrium level of output
B) after tax income should increase shifting AD to the right to a higher equilibrium level of output
C) after tax income and the equilibrium level of output remain unchanged
D) after tax income remains unchanged but the equilibrium level of output would increase
E) none of the above