According to supply-side economists if taxes 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 demand will decrease

B. aggregate supply will increase, aggregate output will increase and the price level will decrease

C. aggregate supply will increase aggregate output will increase and the price level will increase

D. both aggregate supply and demand will increase and the price level will increase

Found an error? Read our corrections policy and submit a sourced correction below. You can also share a useful explanation in your own words.

Discuss the answer or suggest a sourced correction
Thank you for contributing.
Your comment was submitted and will appear after editorial review.

Your email is used only for moderation and is never displayed. Spam, copied material and fabricated endorsements are rejected.