Which of the following would supply-side economists advocate?
I. reducing tax rates in order to encourage people to work more
II. providing investment tax credits to stimulate capital formation spending
III. increasing government spending
IV. increasing transfer payments to those who want to be retrained for employment

Question

Quizplus · Accepted Answer

Supply-side economists would advocate reducing tax rates to encourage people to work more and providing investment tax credits to stimulate capital formation spending. However, increasing government spending and transfer payments are not considered part of supply-side economics, which focuses on promoting economic growth through policies that increase the supply of goods and services.

Which of the Following Would Supply-Side Economists Advocate