One criticism against supply-side cuts in marginal tax rates is that they fail to
A)decrease disinflation in the economy.
B)decrease demand-pull inflation in the economy.
C)increase aggregate supply more rapidly than aggregate demand.
D)increase aggregate demand more rapidly than aggregate supply.

Question

Quizplus · Accepted Answer

Supply-side cuts in marginal tax rates are criticized for not increasing aggregate supply more rapidly than aggregate demand, which can lead to inflationary pressures rather than the intended economic growth.

One Criticism Against Supply-Side Cuts in Marginal Tax Rates Is