One Significant Criticism of the Major Proposition of Supply-Side Economics

question 45

Multiple Choice

One significant criticism of the major proposition of supply-side economics during the period 1980-1988 was that

• A)the tight monetary policy of the Federal Reserve slowed the growth of the economy and caused a severe recession.
• B)major sectors of the economy failed to achieve optimal efficiency from increased regulation by government.
• C)there was a significant increase in the rate of unemployment over the period.
• D)growth in the productive capacity of the economy did not exceed the historical pace.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, listing revenues and expenses to show net profit or loss.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Adjusting Entries

Entries made in financial ledgers at the end of a bookkeeping period to accurately distribute incomes and spending to the intervals in which they factually transpired.

Accrued Salaries

Salaries that have been earned but not yet paid out to employees.