Economists Often Refer to Supply-Sider Arguments as "Voodoo Economics" Because

question 153

Multiple Choice

Economists often refer to supply-sider arguments as "voodoo economics" because

• A) Ronald Reagan and Margaret Thatcher practiced black magic.
• B) lower tax rates do not create incentive effects.
• C) lower tax rates affect only aggregate demand, not aggregate supply.
• D) tax cuts increase real GDP.
• E) in practice, tax cuts have not led to increased tax revenues.

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