Supply-Siders Typically Advocate

question 17

Multiple Choice

Supply-siders typically advocate

• A) tax increases to balance the federal budget.
• B) tax reductions for households and tax increases for businesses to stimulate national output.
• C) a steeply progressive personal income tax structure.
• D) tax reductions to increase both the labor force participation and investment.
• E) tax reductions for low-income workers, to stimulate consumption.

---

Definitions:

Planning Fallacy

The tendency for individuals or organizations to underestimate the time, costs, and risks of future actions and overestimate the benefits.

Behavioral Economics

A field of economic research that examines how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.

Brain Modularity

The concept that the human brain is composed of specialized modules or regions, each responsible for different functions or processes.