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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