Mainstream Economists Think That the Best Way to Stabilize the Economy

question 46

True/False

Mainstream economists think that the best way to stabilize the economy is to shift aggregate supply.

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Definitions:

Aggregate Supply

The nation’s total output of goods and services.

Depression

A severe and prolonged downturn in economic activity, characterized by significant decline in GDP, high unemployment, and deflation.

Supply-Side Economists

Economists who believe that reducing tax rates and regulatory burdens on producers can stimulate investment, increase supply, and lead to economic growth.

Tax Rates

Tax rates are the percentages at which individual or corporate income is taxed by the government.