Supply-side economist Arthur Laffer has argued that:
A. there is no empirically proven relationship between tax rates and incentives.
B. large reductions in personal and corporate income taxes will increase aggregate supply
much more than aggregate demand.
C. the only way to eliminate inflation is to increase taxes to induce a recession severe enough
to eliminate inflationary expectations.
D. large cuts in income taxes will increase aggregate demand more than aggregate supply.
B. large reductions in personal and corporate income taxes will increase aggregate supply
much more than aggregate demand.
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Excess capacity and inefficiency result under monopolistic competition
a. True b. False Indicate whether the statement is true or false
As the slope of the aggregate supply curve increases, this indicates that
A. the economy is getting close to potential GDP. B. the economy is reducing employment. C. inflation will be less of a problem. D. output is falling.
The change in satisfaction derived when an individual consumes one more unit of a good or service is called
A. fixed utility. B. marginal utility. C. total utility. D. average utility.
Refer to Table 19-17. What is real GDP in 2016, using 2011 as the base year?
A) $3,320 B) $3,690 C) $6,360 D) $7,035