Supply side theorists claimed all of the following


Supply side theorists claimed all of the following justifications for their theory, except:

a-Reduced tax rates improve incentives to work and will thereby increase the SRAS

b-Reduced tax rates will improve savings and lead to increased investment spending and increased AD

c-The increases in SRAS and AD will increase Real GDP without affecting the price level

d-The reduction in tax rates will cause massive deficits, however.

e-The government will be able to collect more revenues (Laffer Curve)

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Business Economics: Supply side theorists claimed all of the following
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