Which group believes an increase in the incentives to produce will ultimately move the economy from point A to point C in Figure 18.3?
A)Monetarists.
B)Classical economists.
C)Keynesians.
D)Supply-side economists.

Question

Which group believes an increase in the incentives to produce will ultimately move the economy from point A to point C in Figure 18.3?
A)Monetarists. 
B)Classical economists. 
C)Keynesians. 
D)Supply-side economists.

Quizplus · Accepted Answer

Supply-side economists believe that an increase in incentives to produce (such as lower taxes and regulations) will lead to increased production and supply in the economy, which will ultimately shift the production possibilities curve from point A to point C.

Which Group Believes an Increase in the Incentives to Produce