According to supply-side economists, lowering corporate income taxes:
a. results in wage hikes for employees but no economic growth.
b. moves society toward greater income equality.
c. checks the expansion of real GDP and employment.
d. stimulates investment and economic growth.
e. does not create enough incentive for producers to increase production.
Question 2
A graph showing the inverse relationship between the economy's rate of unemployment and rate of inflation is called the:
a. Laffer curve.
b. aggregate expenditure model.
c. Keynesian cross.
d. Phillips curve.
e. consumption curve.
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