A Criticism of the Arguments for Tax Cuts Made by Supply-Side

Multiple Choice

A criticism of the arguments for tax cuts made by supply-side economists is that the:

A) demand-side effects will be stronger than the supply-side effects.
B) supply-side effects will be stronger than the demand-side effects.
C) supply-side effects will increase saving and reduce consumption.
D) demand-side effects will reinforce the supply-side effects, thus creating cost-push inflation.