Economists often refer to supply-sider arguments as "voodoo economics" because
A) Ronald Reagan and Margaret Thatcher practiced black magic.
B) lower tax rates do not create incentive effects.
C) lower tax rates affect only aggregate demand, not aggregate supply.
D) tax cuts increase real GDP.
E) in practice, tax cuts have not led to increased tax revenues.
Correct Answer:
Verified
Q90: The Laffer Curve is the relationship between
A)
Q91: Politicians use supply-sider arguments to promise to
Q92: Supply-siders favour tax cuts because they believe
Q93: Supply-sider arguments appeal to hands-on economists.
Q94: Which statement is false?
A) Politicians like supply-sider
Q96: According to the Laffer Curve,
A) at tax
Q97: Fiscal policies promoting savings can increase aggregate
Q98: Replacing income taxes with consumption taxes encourages
Q99: Which is not a source of economic
Q100: Supply-siders believe that government should subsidize basic
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