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3 Which of the following is not a reason supply-side tax policy may result in 'trickle down' economics? Savings from tax cuts are spent on
3 Which of the following is not a reason supply-side tax policy may result in 'trickle down' economics? Savings from tax cuts are spent on consumer goods. Savings from tax cuts are invested in real estate, not business investment. Savings from tax cuts result in more business investment and employment. Savings from tax cuts are used to build factories outside of the U.S Question 6 According to supply-side theory, recessions are corrected by which of the following? Wages that increase during a labor shortage. Unemployment and a subsequent reduction in wages. A reduction in employment and an increase in wages. A lingering recession if the unemployed receive unemployment insurance. Question 9 A president advocating demand-side polices would recommend all of the following policies except: Increased spending on highway infrastructure. Lower income taxes of middle and low-income households. Extended unemployment insurance if a recession lasts longer or becomes more severe. Lower taxes on capital gains to encourage businesses to buy more machinery. Question 14 Which of the following is not a role of budget deficits according to demand-side economics? Deficits are the price of curing a recession. Deficits transform savings into spending. Deficits increase aggregate demand. Deficits increase aggregate supply. Thanks
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