Most economists think that:
A) Supply-side effects of a tax cut exceed the demand-side effects
B) Demand-side effects of a tax cut exceed the supply-side effects
C) Demand-side and supply-side effects of a tax cut offset each other
D) There are only supply-side effects from a tax cut

Question

Quizplus · Accepted Answer

Most mainstream economists believe that the demand-side effects of a tax cut (i.e., an increase in consumer spending) tend to be greater than the supply-side effects (i.e., an increase in investment and production). However, there may be some debate on this issue among economists.

Most Economists Think That