Prominent Supply-Side Economist Arthur Laffer Has Argued That

Multiple Choice

Prominent supply-side economist Arthur Laffer has argued that:

A) there is no empirically proven relationship between tax rates and incentives.
B) large reductions in personal and corporate income taxes will increase aggregate supply much more than aggregate demand.
C) the only way to eliminate stagflation is to increase taxes to induce a recession severe enough to eliminate inflationary expectations.
D) large cuts in personal and corporate income taxes will increase aggregate demand more than aggregate supply.