Recessions and Depressions Are the Principal Examples of

question 109

Multiple Choice

Recessions and depressions are the principal examples of

• A)market failure.
• B)coordination failure.
• C)central planning.
• D)socialist contradictions.

---

Definitions:

Supply Side

An economic theory that emphasizes the importance of increasing production and supply as a way to stimulate economic growth, often through tax cuts and deregulation.

Supply-side Arguments

Supply-side arguments focus on the belief that reducing taxes and regulations on businesses will stimulate economic growth by increasing supply, leading to job creation and income growth.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations are required to pay.

Keynesian Approach

An economic theory stating that government intervention through fiscal and monetary policy is necessary to manage economic fluctuations.