The view held by Arthur Laffer and Ronald Reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied became known as
A)California economics.
B)welfare economics.
C)supply-side economics.
D)elasticity economics.

Question

Quizplus · Accepted Answer

The view held by Arthur Laffer and Ronald Reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied is known as supply-side economics. Choice A, California economics, is not a widely recognized term or concept in economics. Choice B, welfare economics, refers to the study of how to best allocate resources to achieve social welfare, rather than the effects of tax cuts on labor supply. Choice D, elasticity economics, refers to the study of how changes in prices affect the quantity demanded or supplied, but it does not specifically relate to tax cuts or labor supply.

The View Held by Arthur Laffer and Ronald Reagan That