Supply-Side Economics Stress That

question 119

Multiple Choice

Supply-side economics stress that:

• A)​aggregate demand is the major determinant of real output and aggregate employment.
• B)​tax rates are not a major determinant of real output and aggregate employment.
• C)​an increase in government expenditures financed by higher tax rates will cause RGDP to rise.
• D)​marginal tax rate changes can exert a significant impact on RGDP, even in the long run.

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Definitions:

Consolidation

Consolidation is the process of combining the financial statements of a parent company and its subsidiaries into a single, comprehensive set of statements.

Outstanding Common Stock

Shares of a company's common stock that have been issued and are in the hands of investors, including those held by the public and company insiders but excluding treasury shares.

Annual Amortization

The procedure of methodically deducting the starting cost of an intangible asset throughout its period of utility.

Retained Earnings

The portion of net profits not distributed to shareholders but reinvested in the business or kept as reserve.