Most Economists Have Reached the Following Conclusion About Supply-Side Economics

question 134

Multiple Choice

Most economists have reached the following conclusion about supply-side economics.

• A)Supply-side tax cuts are likely to reduce income inequality.
• B)Supply-side tax cuts are almost certain to lead to smaller budget deficits.
• C)Supply-side tax cuts are likely to widen income inequality.
• D)None of these.

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Definitions:

Unrealised Profit

Profit that has been generated but not yet realized through a transaction, such as an increase in value of an investment that has not yet been sold for cash.

Opening Inventory

The value of a company's inventory at the beginning of an accounting period, which is carried over from the end of the previous period.

Tax Effect

The impact of tax laws and regulations on an individual's or company's financial decisions and situations, including the calculation of tax liabilities.