Asked by Aubrey Hadley on May 06, 2024
Verified
Which of the following is the most accurate statement?
A) The Keynesians oppose tax cuts because they are afraid that federal government budget deficits will result.
B) The tax cut of 2003 is definitely NOT a "supply-side" tax cut,but rather strongly resembles a short run countercyclical policy.
C) The behaviorist economists predict Americans would spend nearly all of a substantial tax cut.
D) A large cut in marginal tax rates will not result in an increase in the number of hours that people work.
Keynesians
Refers to economists or the economic theories of John Maynard Keynes, emphasizing the role government policies can play in stabilizing the economy.
Supply-Side
An economic theory that emphasizes the importance of increasing production and supply as a means to stimulate economic growth and reduce unemployment.
- Differentiate between various economic theories and their application to macroeconomic policy.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
C
Explanation :
The statement about behaviorist economists predicting that Americans would spend nearly all of a substantial tax cut is the most accurate. The other statements make generalizations and assumptions about specific economic schools of thought or policies that may not necessarily hold true in all situations.
Learning Objectives
- Differentiate between various economic theories and their application to macroeconomic policy.