The tax cuts of 1981 and 1986
a. stimulated the economy and tax revenues increased to eliminate deficits
b. stimulated the economy as supply-side economists predicted it would
c. depressed the economy as supply-side economists predicted it would
d. had neither a noticeable stimulating nor depressing effect on the economy
e. were found to be unconstitutional and so couldn't have had the effect on the economy that the President had hoped
D
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When the marginal cost of producing a bike is greater than the marginal benefit of the bike, for resource use to be allocatively efficient,
A) more bikes should be produced. B) fewer bikes should be produced. C) no more and no fewer bikes should be produced. D) it must be determined if the production of bikes can be increased. E) people must be educated to demand more bikes.
Which of the following statements is FALSE about opportunity cost?
A) Cost is always foregone opportunity. B) Opportunity cost is the next best alternative. C) John wants a burger and fries. The concept of opportunity cost applies even though he has enough funds to buy both. D) Opportunity cost exists only for goods with monetary values.