According to supply-siders, an switch from taxing income to taxing consumption to will
a. lead to a permanent increase in output-per-worker.
b. lead to a temporary increase in output-per-worker.
c. lead to a decline in output-per-worker.
d. not change output-per-worker.
Question 2
Monetarists believe that changes in the money stock
a. have an immediate effect on the level of income.
b. will always have a persistent impact on output for more than two years.
c. do not affect the level of income to any great extent.
d. have a persistent impact on output for as long as it takes the expected price level to adjust to the actual price level.
e. both b and d.
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