Question 1
The Economic Recovery Tax Act of 1981 cut corporate taxes in a way that was designed to
◦ encourage firms to hire more workers.
◦ stimulate capital investment.
◦ encourage firms to use fewer nonrenewable resources.
◦ reduce corporate profits.
Question 2
According to ________ economics, the government needs to focus on policies to stimulate supply.
◦ Keynesian
◦ monetarist
◦ supply-side
◦ new classical