Elasticity of demand is likely to be higher for less-expensive goods, other things being equal

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.

Using the labor market, the production function Real GDP = T (L, K), and the LRAS curve, describe the process by which a decrease in income taxes impacts economic growth