Which Statement Is Consistent with the Supply-Side Theories

question 63

Multiple Choice

Which statement is consistent with the supply-side theories?

• A) The Bank of Canada should use monetary policy only to control the rate of inflation.
• B) The government should promote full employment and production.
• C) The government should periodically increase the minimum wage and unemployment insurance benefits.
• D) Tax cuts influence the aggregate supply significantly.

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Definitions:

Account

A document detailing all dealings related to a specific element of the accounting formula.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure equality.

Debit And Credit Balance

Accounting terms where debit balances typically exist in asset and expense accounts, and credit balances in liability, equity, and revenue accounts.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance, based on accounting rules.