Most economists have reached the following conclusion about supply-side economics.
A)Supply-side tax cuts are likely to reduce income inequality.
B)Supply-side tax cuts are almost certain to lead to smaller budget deficits.
C)Supply-side tax cuts are likely to widen income inequality.
D)None of these.

Question

Quizplus · Accepted Answer

Most economists agree that supply-side tax cuts are likely to widen income inequality. This is because these tax cuts primarily benefit high-income individuals and businesses, who are more likely to save or invest the extra money rather than spend it on goods and services that would boost economic growth and benefit lower-income households. Additionally, these tax cuts can lead to budget deficits if they are not paired with spending cuts or offsetting revenue increases.

Most Economists Have Reached the Following Conclusion About Supply-Side Economics