Statement I: the Key Difference Between Supply-Siders and Other Economists

question 127

Multiple Choice

Statement I: The key difference between supply-siders and other economists is in their judgment about how much output would be changed by a change in the tax rates or regulations facing taxpayers.
Statement II: A supply-side economist would argue that a big tax cut would cause an output increase,but not inflation,when the economy is already near full employment.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

State-dependent Learning

A phenomenon where an individual's ability to recall information is enhanced when in the same state of consciousness as when the information was learned.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological changes such as increased heart rate and hormone levels.

Stressor

An event or condition that causes stress, challenging an individual's ability to cope.

Derealization

A psychological condition in which the world around seems unreal or distant.