A. Supply-side economics
B. neo-Keynesian economists
C. rational-expectations economists.
D. new classical economists.
Supply-Side Policies
A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
A. New classical economists.
B. Left wing theorists
C. interventionist policies.
D. monetarists.
Privatization is the transfer of ?
A. publicly held stock to private individuals
B. corporately owned businesses to individuals
C. government businesses to the private sector.
D. privately owned businesses to the government sector
According to the Laffer curve, as tax rates increase tax revenue ?
A. initially increase and then decrease
B. decrease continuously.
C. rise continuously
D. initially decrease and then increase.
Reaganomics was a radical shift in policy aimed at directly tackling ?
A. the charities economy
B. the demand side of the economy
C. the underground economy
D. the supply side of the country
The success of regional and urban policies has been limited by ?
A. bureaucracy
B. bad luck
C. poor communications
D. the low level of government grants and by the fact that some projects would have gone ahead anyway
According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
C. aggregate supply will increase will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase will increase and the price level will increase
Which of the following would be considered a supply-side policy ?
A. An increase in the minimum wage that would cause consumer spending to increase
B. investment tax credits for businesses to encourage investment
C. Restrictions placed on the amount that can be imported.
D. An increase in government spending that would lead to increased aggregate demand
Which of the following statements supports deregulation of industries ?
A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist, there is rarely a reason for government regulation.
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above
According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?
A. there is no income effect when tax rates are changed
B. the income effect of a wage change is greater than the substitution effect of a wage change.
C. there is no substitution effect when tax rates are changed
D. the substitution effect of a wage change is greater than the income effect of a wage change
