Which of these is a supply-side approach to increase growth?
A)Spending on the construction and repair of state highways
B)Providing tax benefits to start-up companies
C)Investing in the production of arms and ammunitions
D)Replacing old aircrafts with new fighter planes
E)Increasing transfer payments to retirees

Question

Quizplus · Accepted Answer

Providing tax benefits to start-up companies is a supply-side approach to increase growth because it incentivizes businesses to invest in production and innovation, leading to increased output and economic growth. The other options listed are demand-side approaches, as they involve increased government spending or transfer payments to boost consumer demand and stimulate economic activity.

Which of These Is a Supply-Side Approach to Increase Growth