Statement I: The key difference between supply-siders and other economists is in their judgment about how much output would be changed by a change in the tax rates or regulations facing taxpayers.
Statement II: A supply-side economist would argue that a big tax cut would cause an output increase,but not inflation,when the economy is already near full employment.

Question

Quizplus · Accepted Answer

Statement I is true as the key difference between supply-siders and other economists lies in their views about how taxes and regulations affect output.

Statement II is also true as supply-side economists believe that tax cuts can help stimulate output without causing inflation, especially if the economy is already near full employment.

Statement I: the Key Difference Between Supply-Siders and Other Economists