According to Supply-Side Theory,if One Starts from a Balanced Budget,a

question 55

Multiple Choice

According to supply-side theory,if one starts from a balanced budget,a cut in taxes will tend to cause ________.

• A)a budget deficit
• B)no change in the federal government budget
• C)a decrease in aggregate supply and an increase in aggregate demand
• D)a budget surplus

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Definitions:

Business Cycle

Recurring increases and decreases in the level of economic activity over periods of years; consists of peak, recession, trough, and expansion phases.

Gender Discrimination

Inequitable treatment or barriers faced by people based on their gender.

Real Domestic Output

The value of all goods and services produced within a country's borders in a given time period, adjusted for inflation.

Labor Force

The total number of people employed or actively seeking employment in a given economy.