A Criticism of the Arguments for Tax Cuts Made by Supply-Side

question 69

Multiple Choice

A criticism of the arguments for tax cuts made by supply-side economists is that the:

• A)demand-side effects will be stronger than the supply-side effects.
• B)supply-side effects will be stronger than the demand-side effects.
• C)supply-side effects will increase saving and reduce consumption.
• D)demand-side effects will reinforce the supply-side effects, thus creating cost-push inflation.

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Definitions:

Appellate Court

A court that reviews decisions made by lower courts, determining if there were errors in the application of law that could affect the outcome of the case.

New Evidence

Information or data that was previously unknown or unavailable, coming to light and potentially impacting existing conclusions or decisions.

Jury

A group of citizens summoned and sworn to decide on facts in a legal case and render a verdict of guilty or not guilty.

Judgment Notwithstanding

A legal ruling by a judge that overrules the decision of a jury if deemed unreasonable or unsupported by the evidence presented during the trial.