Supply-side fiscal policy involves the use of
A) government spending and taxes to affect the consumption side of the economy.
B) government spending and taxes to affect the production side of the economy.
C) government spending and taxes to affect the net exports side of the economy.
D) monetary policy to supplement traditional fiscal policy.
E) government spending and taxes to affect the aggregate demand curve.

Question

Quizplus · Accepted Answer

Supply-side fiscal policy focuses on increasing the production of goods and services in the economy. This is typically done through policies that reduce taxes on businesses and individuals, increase government spending on infrastructure or education, and remove regulations that hinder production. By increasing the supply of goods and services, supply-side policies aim to boost economic growth and reduce inflation.

Supply-Side Fiscal Policy Involves the Use of