According to supply-side fiscal policy, reducing tax rates on wages and profits will:
a. create demand-pull inflation.
b. lower the price level but may trigger a recession.
c. result in stagflation.
d. reduce both unemployment and inflation.
d
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The above figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling of $1,000 per month, the ceiling will
A) help all renters. B) help some renters and hurt other renters. C) help all landlords. D) have no effect at all on the Bigtown rental market.
A monopolistically competitive firm that earns economic profits in the short run will be able to expand its market share even if the market size remains constant
Indicate whether the statement is true or false
How did the global savings glut in the 2000s affect the U.S. current account balance?
A) It caused it to decline by increasing the value of the dollar. B) It caused it to decline by reducing the value of the dollar. C) It caused it to increase by increasing the value of the dollar. D) It caused it to increase by reducing the value of the dollar.
Which of the following is a key assumption in factor price insensitivity in response to a fall in FDI?
a. Technology is changing in the capital-intensive sector. b. Technology is changing in the laborintensive sector. c. Prices are changing for the capitalintensive good. d. None of these is a key assumption.