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.

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Definitions:

Economy

A system of production, distribution, and consumption of goods and services within a particular geographic region, governed by supply and demand.

Target Markets

The specific group of consumers at whom a company aims its products and services.

Mall of America

A large shopping mall located in Minnesota, USA, known for being one of the largest malls in the country by total area and stores.

Maintained Markup

The difference between the cost of a product and its selling price, kept consistent to achieve a targeted profit margin over time.