Which of the Following Statements Is True

question 100

Multiple Choice

Which of the following statements is true?

• A) A reduction in tax rates along the downward-sloping portion of the Laffer curve would increase tax revenues.
• B) According to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation.
• C) The presence of the automatic stabilisers tends to destabilise the economy.
• D) To combat inflation, Keynesians recommend lower taxes and greater government
• Spending.

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The process of gently extending muscles to improve flexibility and range of motion.