Question

Please fill in the below blanks regarding economic decisions and their impacts (positive or negative): Input Decision Impact (positively / negatively)

A Decrease in the Government Spending impacts , but affects _______ . An Interest Rate cut impacts GDP Growth ___________.

An Increase in the Income Tax Rate impacts ___________________________ , and ________________________ .

A Decrease in the Corporate Tax rate increases the ________________________________, but decreases ____________________________.

Inflation can be increased by _______________________________.

Answer 1

A Decrease in the Government Spending impacts , but affects Positively . An Interest Rate cut impacts GDP Growth positively.

An Increase in the Income Tax Rate impacts negatively , and  increasiong tax rates decrease after tax rate of return (and thus future income) .

A Decrease in the Corporate Tax rate increases the investment , but decreases economic output.

Inflation can be increased by rise in the general price level.