The Tax Cuts in 1981 and 1982 Did Not Lead

question 98

Multiple Choice

The tax cuts in 1981 and 1982 did not lead to growth in GDP as did the tax cuts in 1964.One reason for this difference was that

• A)the 1981-82 tax cuts concentrated on personal tax cuts,but the 1964 cuts were for both personal and corporate taxpayers.
• B)the saving rate increased in 1981-82,but it decreased in 1964.
• C)expansionary monetary policy accompanied the 1964 tax cuts,but the 1981-82 cuts were accompanied by restrictive monetary policy.
• D)tax indexation was built into the 1981-82 tax-cut program,but in 1964 there was no indexation.

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Definitions:

Functionalism

A theoretical framework in sociology that focuses on how the various parts of society contribute to the overall stability and functionality of the system.

Darwin

Charles Darwin, a 19th-century naturalist best known for his contributions to the science of evolution, proposing that species evolve over time through natural selection.

Evolutionary Theory

A scientific explanation of the diversity of life on Earth, stating that species change over time through processes like natural selection and genetic mutation.

Societies Change

The concept that societal structures, norms, and values evolve over time due to various factors.