From the Perspective of Supply-Side Economists, a Cut in Tax

question 129

Multiple Choice

From the perspective of supply-side economists, a cut in tax rates will

• A) increase output but will increase the budget deficit.
• B) increase unemployment but will reduce the budget deficit.
• C) reduce unemployment but will increase the budget deficit.
• D) reduce unemployment and also reduce the budget deficit.

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Definitions:

Posterior Skin

The skin on the back or rear part of the body.

Acidosis

A medical condition in which the body fluids contain too much acid, often due to kidney failure or prolonged lack of oxygen.

Sweet And Fruity

A description often used for aromas, flavors, or tastes that are reminiscent of sugar and fresh fruit.

Manner Of Walking

The distinctive way in which an individual walks, often influenced by physical condition, mood, or personality.