Supply-side economists believe that a reduction in the tax rate a. 25. always de
ID: 1116585 • Letter: S
Question
Supply-side economists believe that a reduction in the tax rate a. 25. always decrease government tax revenue. shifts the aggregate supply curve to the right. b. c. provides no incentive for people to work more. d. would decrease consumption. The Kennedy tax cut of 1964 was a. successful in stimulating the economy b. designed to shift the aggregate demand curve to the right. c. designed to shift the aggregate supply curve to the right. d. All of the above are correct. 26. Economists agree on all of the following except that a. increases in the money supply shift aggregate demand to the right. b. in the long run, increases in the money supply increase prices, but not output c. recessions are associated with decreases in consumption, investment, and employment. d. government should use fiscal policy to try to stabilize the economy 27.Explanation / Answer
Answer 25 : Supply side economist believe that a reducation in tax rate shift the aggregate supply curve to the right because now the workers are more interested in doing job as they earned more as taxes has been reduced from an economy.
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Answer 26 : The Kennedy tax cut of 1964 was result in the successful stimulating the economy as well as designed to shift aggregate demand and supply curve shift to the right because they want to make initative among the workers they get more paid for the same work which means there willingness to work increased as well as consumpation in the economy increases.
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Answer 27 : Economist agree in all of the following expect that in the long run , increase in money supply , increase price but not output. But nominal GDP tend to rise with the increase in money. Real GDP adjusted with inflation does not track closely or depend more on productivity of economic agent and business.
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