EASY
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Which of the following statements is true about supply-side economics?
(a)The main change made by the tax laws of 1981 and
1986 was to increase marginal tax rates in order to
balance the budget
1986 was to increase marginal tax rates in order to
balance the budget
(b)The Laffer Curve says that, if marginal tax rates fall,
tax revenues will rise, and the budget deficit will
decrease
tax revenues will rise, and the budget deficit will
decrease
(c)If the tax laws of 1981 and 1986 had had their
intended effect, consumption would have risen,
causing an increase in both real GDP and in the price
level
intended effect, consumption would have risen,
causing an increase in both real GDP and in the price
level
(d)All of these

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