The supply-side motivated tax cuts of 1981 during the Reagan administration were aimed at:
A. increasing aggregate demand.
B. increasing aggregate supply.
C. decreasing aggregate supply.
D. balancing the federal budget.
Answer: B
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The U.S. current account deficit improved slightly from 2007 to 2010 because
A) spending on imports fell due to an overall fall in consumption. B) state, local, and federal government budget deficits increased. C) worldwide economic growth spurred U.S. exports. D) capital controls restricted capital inflow.
The natural rate of unemployment (i) is the economy's desirable level of unemployment. (ii) arises from a single problem that has a single solution. (iii) is the amount of unemployment that does not go away on its own
a. (i) and (ii) only b. (iii) only c. (i), (ii), and (iii) d. None of the above is correct.