10 1( point) Supply-side theory suggests the effects of changes in taxes A) Lower tax rates lead ot an increase ni productivity because individuals wil work harder and longer, save more, and invest more B) Increased productivity will ni turn lead ot more economic growth, thus higher realGDP C) Results: Lower marginal tax rates willnot necessarily reduce tax revenues due to alarger tax base D) All of the above Question 11 (1 point) Time Lags are an issue with Discretionary Fiscal Policy because A) Recognition Time Lag - The time required ot gather information about the current state of the economy B) Action Time Lag - The time required between recognizing na economic problem and putting policy intoeffect C) Effect Tmi e Lag - The time ti takes for a fiscal policy to afect the economy D) Banking TimeLag - The time ti takes banks ot react ot changes ni fiscal policy before it affects the economy. Question 12 1( point) Examples of Automatic ro Built-In Stabilizers include: A) Welfare spending B) The tax system Unemployment compensation C) un employment compensation D) State andlocal government spending Question 13 1( point) Government Budget Deficit exists because government spends more than it receives in taxes during a given period of time O True O False Question 14 (1 point) For something to serve as money, it must be A) backed by the authority of hte government. B) generaly accepted by buyers and selers. C) light, durable, and common. D) convertible to gold. E) All of the above