What was one consequence of the Bush tax cuts on the national economy?

Study for the AMSCO AP United States History Exam (APUSH) – Period 9. Enhance your knowledge with flashcards and multiple-choice questions. Each question comes with hints and explanations. Get ready for your exam!

The choice highlighting an increase in the national deficit accurately reflects one significant consequence of the Bush tax cuts enacted in the early 2000s. These tax cuts were intended to stimulate the economy by increasing disposable income for individuals and businesses, ultimately fostering spending and investment.

However, while they did lead to some short-term economic growth, the overall effect was a reduction in government revenue. As the government collected less tax income but continued its spending programs, the national deficit increased as expenditures outpaced revenues. This contributed to a significant rise in the national debt during the years that followed.

In contrast, the other options do not align with the broader economic analysis of the Bush tax cuts. There was no surplus in national revenue during this period; rather, the cuts were linked to diminished tax receipts. Similarly, the government debt increased rather than decreased, and while there was some job growth, the overall impact on employment was mixed and not universally viewed as an improvement. Thus, the increase in the national deficit stands out as a clear and direct consequence of the policy decisions related to the Bush tax cuts.

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