Asked by Joshua Reavis on Jun 19, 2024
Verified
Arthur Laffer's macroeconomic theory and political philosophy are linked.He is a
A) monetarist and a conservative.
B) supply-sider and a conservative.
C) new classical macroeconomist and a liberal.
D) Keynesian and a liberal.
Arthur Laffer
An economist known for the Laffer Curve, which theorizes there exists an optimal tax rate that maximizes government revenue without discouraging economic activity.
Macroeconomic Theory
A branch of economics that studies the behavior and performance of an economy as a whole, including issues like inflation, unemployment, and national income.
Supply-Sider
An advocate or supporter of supply-side economics, a school of economic thought that emphasizes the benefits of making goods and services more available to consumers.
- Discuss the impact of tax policies on economic behavior and government revenues, including the Laffer Curve concept.
Verified Answer
DB
Dartrecia BishopJun 26, 2024
Final Answer :
B
Explanation :
Arthur Laffer is most commonly associated with the supply-side economic theory, which advocates for lower tax rates and smaller government intervention in order to promote economic growth. This theory is closely linked with conservative political philosophy, making B the best choice.
Learning Objectives
- Discuss the impact of tax policies on economic behavior and government revenues, including the Laffer Curve concept.