Supply-Side Economist Arthur Laffer Has Argued That

question 37

Multiple Choice

Supply-side economist Arthur Laffer has argued that

• A) there is no empirically proven relationship between tax rates and incentives.
• B) large reductions in personal and corporate income taxes will increase aggregate supply much more than aggregate demand.
• C) the only way to eliminate inflation is to increase taxes to induce a recession severe enough to eliminate inflationary expectations.
• D) large cuts in income taxes will increase aggregate demand more than aggregate supply.

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Definitions:

Company Supplies

Materials and goods provided by an organization for its employees to perform their jobs.

Strong Work Ethic

A set of values centered on the importance of hard work and diligence, reflecting an individual's commitment to effectively performing job tasks.

Gen Y

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Older Workers

Individuals in the workforce who are near or beyond the traditional retirement age, often defined as those over 50 or 60 years old.