10. “At a pragmatic level, my colleagues take the view that if a rich man paying a lower tax rate makes it possible for a low-income family to have a good house to live in, useful 32and secure...

10. “At a pragmatic level, my colleagues take the view that if a rich man paying a lower tax rate makes it possible for a low-income family to have a good house to live in, useful 32and secure employment, access to quality, affordable medical care, and a good education for their children – then society as a whole is richer.” This refers to the trade-off betweena) equity and efficiency b) consumption and savingc) inflation and unemployment d) taxes and government spending11. “One striking challenge came from “supply-side” economists who contended that the sheer waste and perverse incentives associated with high tax rates created opportunities to cut tax rates without cutting …….” Complete this sentence.a) inflation b) tax receipts c) employment d) budget deficits12. “Supply-side economics, packaged and popularized as ‘Reaganomics,’ has become a big deal in the current policy debate over the fight against stagflation. To counteract this phenomenon of persistent high inflation, unemployment and stagnant growth, supply-side policies emphasize increasing production to take the pressure off prices.” How would this policy be reflected on an AS/AD diagram?a) the AS curve shifts up b) the AD curve shifts rightc) the AS curve shifts down d) the AD curve shifts left