Use the following to answer questions .
Exhibit: Supply-Side Economics
-(Exhibit: Supply-Side Economics) If the economy is initially at Y₁, supply-side economists would
Advocate

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Use the following to answer questions . Exhibit: Supply-Side Economics -(Exhibit: Supply-Side Economics) If the economy is initially at Y₁, supply-side economists would Advocate

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Supply-side economists believe that lower taxes will lead to increased work incentives and economic growth, which in turn will lead to increased tax revenues for the government. This approach is known as "trickle-down" economics. Therefore, if the economy is initially at Y₁, supply-side economists would advocate for lower taxes to encourage people to work more and stimulate economic growth.

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