According to supply-side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because
A) the crowding out effect does not apply to taxes.
B) lower tax rates have no effect on the opportunity cost of labor.
C) the aggregate supply curve will shift inward to the left if the tax rates are lowered.
D) the lower marginal tax rates will be applied to a growing tax base due to a higher output level.
Correct Answer:
Verified
Q83: If the government began providing free textbooks
Q84: The Laffer curve shows a relationship between
A)
Q85: Supply-side economists argue that
A) higher tax rates
Q86: By definition, a direct expenditure offset will
Q87: The tendency for expansionary fiscal policy to
Q89: What does research tell us about the
Q90: According to supply-side economics, changes in marginal
Q91: Supply-side economics focuses on tax cuts to
Q92: If the government increases its spending but
Q93: If the government increases spending while holding
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents