Critics of Supply-Side Economic Theory Argue That the Tax Cut

question 32

Multiple Choice

Critics of supply-side economic theory argue that the tax cut of 1981

• A) shifted the aggregate supply curve to the left.
• B) shifted the aggregate demand curve to the left.
• C) caused the price level to rise with no change in real GDP.
• D) led mainly to dramatic increases in the money supply.
• E) did not increase the percent of total income devoted to saving.

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Definitions:

Renewed

The act of extending the period of validity or effectiveness of something, such as a license, subscription, or agreement.

Trade Secret

A type of intellectual property consisting of a practice, design, formula, process, or compilation of information not generally known or reasonably ascertainable, by which a business can gain an economic advantage over competitors or customers.

Unfair Competition

Business practices that are deceptive, fraudulent, or otherwise harmful to consumers or other businesses, leading to an uneven playing field.

Economic Espionage Act

An act that makes it a federal crime to steal trade secrets or to receive or possess trade secrets known to be stolen.