According to the Theory of Supply-Side Economics,tax Cuts Will Result

question 16

Multiple Choice

According to the theory of supply-side economics,tax cuts will result in __________.

• A)budget deficits
• B)higher interest rates
• C)an economic downturn
• D)greater government revenue

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Definitions:

Equilibrium Price

The equilibrium price is the price at which the quantity of goods suppliers are willing to supply matches the quantity of goods consumers are willing to buy, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price in a marketplace.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.

Equilibrium Price

The market price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.