An example of a price floor is a

If consumers save the entire amount of the increase in their disposable income due to a tax cut, the ________

A) tax cut will lead to a decrease in GDP B) tax cut will lead to an increase in GDP C) tax cut will lead to an increase in current account deficit D) tax cut will have no effect on GDP

If the government increases expenditure by $40 billion and increases tax revenue by $40 billion, what is the impact on aggregate demand? Explain your answer

What will be an ideal response?