Tax cuts associated with supply-side economics often lead to increased

a. federal budget surpluses.
b. federal budget deficits.
c. foreign trade surpluses.
d. government spending.

b

Economics

You might also like to view...

Under a first-dollar health insurance plan, the patient's marginal cost of treating a covered illness is:

A. a percentage of the total cost. B. negative. C. zero. D. positive.

Economics

Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.

A. D; C B. D; B C. A; B D. B; C

Economics