question archive Supply side economics: (a) espouses that tax cuts will increase aggregate demand and stimulate economic growth (b) espouses that tax cuts will increase aggregate supply and stimulate economic growth (c) is generally accepted by mainstream economists (d) has proven to be effective in stimulating the U
Supply side economics: (a) espouses that tax cuts will increase aggregate demand and stimulate economic growth (b) espouses that tax cuts will increase aggregate supply and stimulate economic growth (c) is generally accepted by mainstream economists (d) has proven to be effective in stimulating the U
Subject:EconomicsPrice:2.88 Bought3
Supply side economics:
(a) espouses that tax cuts will increase aggregate demand and stimulate economic growth
(b) espouses that tax cuts will increase aggregate supply and stimulate economic growth
(c) is generally accepted by mainstream economists
(d) has proven to be effective in stimulating the U.S. economy
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The answer is: (b). espouses that tax cuts will increase aggregate supply and stimulate economic growth.
Supply side economics espouses that tax cuts will increase aggregate supply and stimulate economic growth.
Explanation:
Supply side economics involves cutting taxes, lowering borrowing rate and deregulation of markets to increase aggregate supply. An increase in aggregate supply will stimulate the economic growth. For example, cutting taxes increases incentives to work, save money and invest.
