One objection to supply-side tax cuts is that demand-side changes
A)are smaller than supply-side changes.
B)and supply-side changes are about equal.
C)are more unpredictable than supply-side changes.
D)are larger than supply-side changes.

Question

Quizplus · Accepted Answer

One objection to supply-side tax cuts is that demand-side changes are larger than supply-side changes. This is because supply-side changes primarily affect producers and suppliers, while demand-side changes affect the behavior and spending patterns of consumers, who make up a larger portion of the economy. Therefore, demand-side changes may have a more significant impact on overall economic growth and stability.

One Objection to Supply-Side Tax Cuts Is That Demand-Side Changes