Exhibit 15-8 Aggregate demand and supply curves

In Exhibit 15-8, supply-siders claimed that the shift from AS₁ to AS₂ would occur if the government:

Question

Exhibit 15-8 Aggregate demand and supply curves In Exhibit 15-8, supply-siders claimed that the shift from AS₁ to AS₂ would occur if the government:

Quizplus · Accepted Answer

Supply-siders believe that decreasing tax rates and decreasing government regulation will increase the incentives for businesses to produce and invest, leading to an increase in aggregate supply. Therefore, the shift from AS₁ to AS₂ would occur if tax rates were decreased and the amount of government regulation was decreased.

Exhibit 15-8 Aggregate Demand and Supply Curves