Which Statement Is False

question 223

Multiple Choice

Which statement is false?

• A) Politicians like supply-sider arguments because they can promise to cut taxes without reducing government services or going into debt.
• B) Politicians who favour a hands-on role for government often use supply-sider arguments to support tax cuts.
• C) All economists believe tax cuts have some incentives effects increasing aggregate supply.
• D) Tax cuts affect aggregate demand and, to a lesser extent, aggregate supply.
• E) There is no evidence to support the claims of supply-siders that tax cuts have large effects on aggregate supply.

---

Definitions:

Cost of Goods Sold

The immediate expenses linked to the creation of products that a company sells.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Work in Process

Inventory that includes the cost of raw materials, labor, and manufacturing overhead for products that are in various stages of production but not yet complete.

Finished Goods

Finished goods that are prepared and available to be bought by customers.