Which of the following statements is correct?
A)According to the supply-side view,the tax cuts during Bush's first term in office were supposed to increase aggregate supply and move the economy towards higher output but a higher price level.
B)President Bush pushed for significant cuts in government spending during his first term in office in order to assure that demand was not overly stimulated and to hold the budget deficit as low as possible
C)The Bush tax cuts were aimed at maximizing the increase in aggregate demand in order to stabilize output.
D)None of the above

Question

Quizplus · Accepted Answer

The supply-side view, which was endorsed by President Bush, is based on the belief that tax cuts can stimulate economic growth by providing incentives for businesses and individuals to increase production and investment. The goal of the tax cuts was to increase aggregate supply, not demand, as stated in option A. Options B and C are incorrect as they do not accurately reflect Bush's economic policies during his first term in office.

Which of the Following Statements Is Correct