Arguments for tax cuts made by supply-side economists

Assignment Help Business Economics
Reference no: EM131169349

A criticism of the arguments for tax cuts made by supply-side economists is that the:

A) demand-side effects will reinforce the supply-side effects, thus creating cost-push inflation.

B) supply-side effects will increase saving and reduce consumption.

C) demand-side effects will be stronger than the supply-side effects.

D) supply-side effects will be stronger than the demand-side effects.

Reference no: EM131169349

Questions Cloud

Average total cost of producing ten units of output : Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 units of output are produced, and that the wage rate is $12. If labor is the only variable input, what is the average total cost of producing 10 units of outp..
Competing producers and enhances overall country welfare : "While the imposition by a country’s government of an import tariff on a good clearly injures the country’s domestic consumers of the good, the tariff helps domestic import-competing producers and enhances overall country welfare.
Suppose the government imposes an excise tax : Suppose the government imposes an excise tax of $10 on a market. Suppose further that the price elasticity of demand for the good is 0.9 and the price elasticity of supply is 0.3. Everything else held constant, the sellers will bear _____ percent of ..
Adverse technological shock on the labor market : Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market. b. Suppose you were interested in increasing technological progress in your country.
Arguments for tax cuts made by supply-side economists : A criticism of the arguments for tax cuts made by supply-side economists is that the:
Profitmaximizing output for monopolist with abnormal profit : Draw a diagram illustrating the profitmaximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that repres..
Explain the difference in the size of the elasticities : According to studies by economists Frank Chaloupka and Michael Grossman, the price elasticity of demand for cigarettes for teenagers is 1.3 and for adults is 0.4 ("Price, Tobacco Control Policies and Smoking Among Young Adults," JHE, Vol. 16, no. 3 (..
Segment of the demand curve elastic or inelastic : The equation for a demand curve is P = 48 – 3Q. Calculate the elasticity when moving from a quantity of 5 to a quantity of 6? Show your work. Based on your answer, is this segment of the demand curve elastic or inelastic?
From the financial statements of under armour : From the financial statements of Under Armour identify any sources of risk in there operations. Do the financial reports indicate any uncertain activities or changes to the economic environment that ultimately appear to have affected the company's fi..

Reviews

Write a Review

Business Economics Questions & Answers

  Zero coupon bond-what is the current value of bond

Diane Carter is interested in buying a five-year zero coupon bond whose face value is $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?

  Most optimal number of space

Illustrate what would be the most optimal number of spaces, and Illustrate what are these corresponding prices.

  What is your average cost per unit of output

Suppose that you have a business in which you hire five workers, to whom you pay $4 an hour. Suppose further that you have overhead costs of $100 a day and that you pay $1 in materials cost fo each item that your business manufactures. Assuming that ..

  What will be the clarke tax paid by each person

There are three individuals in a community that is deciding whether to unveil a statue of Elvis. Individual 1 would receive a net benefit of 25 if the statue were unveiled. Individual 2's net benefit would also be positive and would be 20. What will ..

  What price should you charge for movie tickets

All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets?

  Supply of and demand for the canadian dollar

Draw a graph of the supply of and demand for the Canadian dollar (C$) by the U.S. market. Diagram the effect of each of the following on the exchange rate; state whether the effect is long, medium, or short run.

  Increase in government expenditure also reduction

Assume there is a simultaneous increase in government expenditure also reduction in the funds provide.

  Light of the present health care environment

Children’s Hospital in Boston, Massachusetts, has long been considered an out-standing medical center specializing in the diagnosis and treatment of paediatric problems. This facility is linked academically to the Harvard University Medical School. C..

  What is the price elasticity of labor supply

Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?

  Pay for such security having principal value

A 5 year treasury note has a coupon rate of 2.50%. What price would you pay for such a security having a principal value (par value) of $1 million if the current interest rate is 2.25%? The current interest rate is 3%? (to simplify the calculations, ..

  Find out the equation price and quantity

demand for a good of an industry is given by the equation pq=100, where p is the price and q is quantity and supply is given by the equation 20+3p=q. find out  the equation price and quantity

  Parameters is to be performed on before-tax basis

The architectural and engineering estimate of $3,750,000 for the building is believed to be accurate, as is the estimates of $225,000 for annual operating and maintenance costs and $750,000 for existing equipment. A sensitivity analysis for these two..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd