According to supply-side fiscal policy, reducing tax rates on wages and profits will:
a. create demand-pull inflation.
b. lower the price level but may trigger a recession.
c. reduce both unemployment and inflation.
d. result in stagflation.
c
Economics
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A production possibilities curve measures opportunity cost in dollar terms.
a. true b. false
Economics
In order for an economy to shift its production possibilities curve rightward, it must:
a. suffer resource unemployment. b. experience an increase in its resources and/or an improvement in its technology. c. use its resources more efficiently than at points along the curve. d. all of these.
Economics