According to supply siders, tax cuts should increase aggregate supply
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Which of the following would most likely be sold in the product markets?
A) iron ore B) entrepreneurial ability C) a new car D) stocks and bonds
Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits
A) emotionally B) equitably C) selfishly D) rationally
When a liquidity trap situation exists, the most appropriate policy to increase output would be
A) a central bank sale of bonds. B) an increase in government spending. C) a central bank purchase of bonds. D) none of the above
According to purchasing-power parity, if the same basket of goods costs $100 in the U.S. and 50 pounds in Britain, then what is the nominal exchange rate?
a. 2 pounds per dollar b. 1 pound per dollar c. 1/2 pound per dollar d. None of the above is correct