The Central Idea of Supply-Side Tax Cuts Is That Certain

question 205

Multiple Choice

The central idea of supply-side tax cuts is that certain types of tax cuts will increase

• A)aggregate demand.
• B)aggregate supply.
• C)the supply of imports.
• D)the supply of money.

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Definitions:

Trade

The exchange of goods, services, or both between two or more parties, either within an economy or between economies.

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prevailing prices.

International Trade

The exchange of goods and services across international boundaries or territories, involving the import and export of products.

Opportunity Cost

The worth of the best alternative that is given up in order to make a choice.