# 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 ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: 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 ? Correct Answer: B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# 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 ?

Direct Answer & Quick Reference

The correct option is **B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease**.

A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease

B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease **(Correct Answer)**

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

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

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Verified Key: B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
Solved by 1,794+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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