Author Question: Which of the following statements about taxation is incorrect? a. A tax cut affects aggregate ... (Read 91 times)

abc · **on:** Jun 30, 2018

Which of the following statements about taxation is incorrect?
a. A tax cut affects aggregate demand indirectly.
b. A tax cut raises income and expenditures.
c. Cutting taxes by 20 is not the same as increasing government spending by 20.
d. A change in taxes does not affect consumption.
e. An increase in taxes decreases income and expenditures.

Question 2

Today's demand curve for gasoline could shift in response to
a. a change in today's price of gasoline.
b. a change in the expected future price of gasoline.
c. a change in the number of sellers of gasoline.
d. All of the above are correct.