According to supply-side fiscal policy, reducing tax rates on wages and profits will:

Question

Quizplus · Accepted Answer

According to supply-side fiscal policy, reducing tax rates on wages and profits will increase the incentive to work and invest, which will lead to an increase in production and output. This will ultimately lead to a reduction in both unemployment and inflation, as more people are employed and there is an increase in the supply of goods and services. Therefore, choice D is the correct answer.

According to Supply-Side Fiscal Policy, Reducing Tax Rates on Wages