According to supply-siders the main consequence of reducing tax rates is
A) increases aggregate demand and the price level.
B) increases in aggregate supply.
C) increases in aggregate supply and the price level.
D) making the aggregate supply curve upward-sloping.
B
You might also like to view...
An example of a government policy to provide a framework within which the private sector can operate productively is:
A. government ownership of capital. B. the suppression of political dissent. C. the taxation of savings. D. establishing well-defined property rights.
Suppose that the nominal exchange rate between the U.S. dollar and the Canadian dollar is 0.75 U.S. dollars per Canadian dollar. If Canada's rate of inflation is 0 percent and the U.S. rate is 10 percent, then the real exchange rate for the U.S
dollar will A) appreciate by about 9 percent. B) appreciate by 10 percent. C) depreciate by about 9 percent. D) depreciate by 10 percent. E) None of the above.
The case of New Zealand, described in the text, draws what technical conclusion regarding the country's international debt position?
What will be an ideal response?
As firms exit a monopolistically competitive market, profits of existing firms ____ and product diversity in the market ____
a. decline; decreases b. rise; decreases c. rise; increases d. decline; increases