If an economy is at full employment, an income tax cut will result in: an increase in LRAS and economic growth.

If an economy is at full employment, an income tax cut will result in:

a. an increase in LRAS and economic growth.

b. a higher price level and more output in the short run, but only a higher price leve in the long run.

c. a higher price level and more output in the short run, but only higher output in the long run.

d. an increase in AD and increase output in the long run.

e. a decrease in AD and an increase in capacity.

Explain

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"