A Criticism of the Arguments for Tax Cuts Made by Supply-Side

question 69

Multiple Choice

A criticism of the arguments for tax cuts made by supply-side economists is that the:

• A)demand-side effects will be stronger than the supply-side effects.
• B)supply-side effects will be stronger than the demand-side effects.
• C)supply-side effects will increase saving and reduce consumption.
• D)demand-side effects will reinforce the supply-side effects, thus creating cost-push inflation.

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Definitions:

Unreasonable

Actions or decisions that lack rational basis, often seen as unfair or unjustified under the given circumstances.

Essential Terms

The critical and necessary conditions or clauses in a contract that define the parties' key obligations and rights.

Illegal Contract

is an agreement between parties that is not enforceable by law due to its involvement in illegal activities or its terms violating legal statutes.

Performance Rendered

The execution or completion of a task, duty, or performance as agreed upon in a contract or expected in an obligation.