typing answer with explanation and conclusion Supply-side theory asserts that high marginal tax rates: Discourage government expenditures. Discourage work effort. Encourage private saving. Encourage business investment.
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- supply-side economists believe that a reduction in the tax rate a. always decrease government tax revenue b. shifts the aggregate supply curve to the right c. would decrease consumption d. provides no incentive for people to work more d. provides no incentive for people to work moreWhich of the following would constitute a supply-side economic policy for raising employment? a) decreasing social security benefitsb) decreasing the money supplyc) increasing corporate and personal taxationd) increasing government spending aimed at exploiting the multiplier effectPlease explain and discuss supply-side economics.
- Average Tax Rate Tax Revenue ($B) 20% $250 40 300 60 250 80 200 Refer to the table. If the current tax rate is 60 percent, supply-side economists would advocate Multiple Choice lowering tax rates to 20 percent, or lower if possible. lowering tax rates to 40 percent. keeping tax rates at 60 percent. raising tax rates to 80 percent.Aggregate supply (AS) changes with each of the following except: Fiscal policy and monetary policy Potential GDP changes The money wage rate changes The money prices of other resources changeExamine the following policies and determine which would decrease the level of aggregate demand. Group of answer choices A. Decreasing in government spending and decreasing taxes B. Increasing investment and increasing government spending C. Decreasing in government spending and increasing in taxes D. Increasing consumption and decreasing taxes
- Which of the following is true? A. Potential GDP decreases as the price level increases. B. At full employment, aggregate supply is equal to potential GDP. C. The potential GDP line has a negative slope. D. Potential GDP increases as the price level increases. E. Aggregate supply is another name for potential GDP.If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur? A. Aggregate demand will be unchanged. B. Aggregate demand will increase. C. Interest rates will decrease. D. The money supply will decrease.explain the role of supply side policy in macro economic policy
- Reductions in the personal income tax, often advocated by supply-siders to increase labor supply and effort, can be expected to also a. decrease consumption spending. b. increase export sales. c. increase consumption spending. d. decrease investment spending.Aggregate Demand (AD) - According to the Total Supply (AS) Model, by comparing the initial equilibrium situation that will occur due to the realization of the following two developments together in an economy and the last equilibrium state in terms of the change in the General Level of Prices and Equilibrium National Income (increases / decreases / does not change).a) The state increases the transfer expenditures.b) Increasing monopolization tendency in the economy.During recessions, taxes tend to a. rise and thereby increase aggregate demand. b. fall and thereby decrease aggregate demand. c. fall and thereby increase aggregate demand. d. rise and thereby decrease aggregate demand.