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 as it aims to increase the production capacity and efficiency of businesses. By reducing the tax burden on start-ups, it incentivizes entrepreneurs to launch new businesses, which can potentially create jobs and increase economic growth. The other options listed do not directly address supply-side factors that contribute to economic growth.

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