One central idea in supply-side economics concerning budget deficits is illustrated by the:
A) Production possibilities curve
B) Aggregate supply curve
C) The Laffer Curve
D) The Phillips Curve

Question

Quizplus · Accepted Answer

The Laffer Curve is a central concept in supply-side economics that argues that lowering tax rates can actually lead to increased government revenue due to increased economic growth and productivity. This is because lower taxes can incentivize individuals and businesses to work harder and invest more, leading to a larger tax base and higher overall revenue. Therefore, supply-siders argue that reducing tax rates can help alleviate budget deficits by increasing government revenue, rather than simply cutting government spending.

One Central Idea in Supply-Side Economics Concerning Budget Deficits Is