Prominent supply-side economist Arthur Laffer has argued that:

Question

Quizplus · Accepted Answer

Arthur Laffer is a proponent of supply-side economics, which argues that reducing taxes on businesses and individuals will lead to increased economic growth and job creation. According to Laffer, lowering tax rates will increase incentives for individuals and businesses to work and invest, ultimately leading to a higher aggregate supply. However, this increase in supply may not necessarily result in an immediate increase in aggregate demand. Therefore, large reductions in personal and corporate income taxes will increase aggregate supply much more than aggregate demand.

Prominent Supply-Side Economist Arthur Laffer Has Argued That