
-Refer to the above figure.Suppose that the economy starts at
.If the government reduces taxes,then the economy goes to
,but then falls back to
.This is an example of
A) partial crowding-out effect.
B) the free rider problem.
C) laissez-faire.
D) complete crowding-out effect.
Correct Answer:
Verified
Q142: Supply-side economists argue cuts in tax rates
A)always
Q143: When private expenditures decrease as a result
Q144: Q146: According to the Laffer curve, we know Q150: The notion that a decline in tax Q151: The Laffer curve shows that as tax 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![]()