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1. If taxes are lowered, we can expect supply-side economists to support the decision to do...

1. If taxes are lowered, we can expect supply-side economists to support the decision to do so because a. government revenues will increase in the long run. b. the government will spend more in the short run. c. economic growth cannot occur without it. d. government spending will decrease in the long run.

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Answer #1

Answer : 1) The answer is option c.

Supply side economists argue that the efficient economic growth will occur when tax is low. Because when tax is low then the cost of production decrease. As a result, price level fall which increase the demand. So, with lower tax the production level increase and both buyers and sellers become benefited. As a result, the efficient economic growth occur. Therefore, option c is correct.

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