Critics of supply-side economics
A) argue that a tax cut will increase aggregate supply by more than it increases aggregate demand.
B) contend that the relationship between tax rates and economic incentives is small and of uncertain direction.
C) believe that a decline in tax rates will increase tax revenues.
D) point out that tax cuts enable households to substitute work for leisure.

Question

Quizplus · Accepted Answer

Critics of supply-side economics argue that the relationship between tax rates and economic incentives is not clear-cut and is difficult to predict. They also believe that the benefits of tax cuts mainly accrue to the wealthy rather than stimulating economic growth.

Critics of Supply-Side Economics