According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

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

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?

A. reduce poverty
B. reduce unemployment
C. weaken the power of trade unions
D. help small businesses

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 ?

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

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

A. Supply-side economics
B. neo-Keynesian economists
C. rational-expectations economists.
D. new classical economists.