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Both Keynesians and Supply-Siders Believe a Tax Cut Will Lead

Question 5

Multiple Choice

Both Keynesians and supply-siders believe a tax cut will lead to growth:


A) and both agree it works through incentive effects.
B) but Keynesians believe it works through incentive effects whereas supply-siders believe it works through aggregate demand.
C) but Keynesians believe it works through aggregate demand whereas supply-siders believe it works through incentive effects.
D) and both agree it works through aggregate demand.

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