In Which Cases Were Tax Cuts Followed by Robust Growth

question 5

Multiple Choice

In which cases were tax cuts followed by robust growth?

• A)the ones of the Kennedy administration in 1964 and the ones of the Reagan administration in 1981
• B)the ones of the Kennedy administration in 1964 but not the ones of the Reagan administration in 1981
• C)the ones of the Reagan administration in 1981 but not the ones of the Kennedy administration in 1964
• D)neither the ones of the Kennedy administration in 1964 nor the ones of the Reagan administration in 1981

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Definitions:

Sales Required

The minimum sales needed to achieve a specific financial goal or to cover costs.

Variable Cost

Costs that vary directly with the level of production or output.

Break-even Point

The level of production or sales at which total revenues equals total expenses, with no net loss or gain.

Contribution Margins

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.