According to supply-siders,an switch from taxing income to taxing consumption to will
A)lead to a permanent increase in output-per-worker.
B)lead to a temporary increase in output-per-worker.
C)lead to a decline in output-per-worker.
D)not change output-per-worker.

Question

Quizplus · Accepted Answer

According to supply-siders, taxing consumption rather than income would lead to increased savings, investment, and productivity, thereby shifting the long-run aggregate supply curve to the right. This would result in a permanent increase in output-per-worker.

According to Supply-Siders,an Switch from Taxing Income to Taxing Consumption