Which of the following principles would be accepted by a supply-sider?
A) Aggregate demand determines national output.
B) Monetary policy is the best tool for influencing aggregate supply.
C) Government on national parks spending is the key to resolving recessions.
D) People produce less of whatever is taxed heavily.

Question

Quizplus · Accepted Answer

Supply-side economics emphasizes that lower taxes can stimulate economic growth by encouraging people to produce more. This principle is reflected in choice D, which states that heavy taxation on something leads to less production of it. This aligns with the supply-side view that reducing taxes on labor, capital, and investments can increase overall economic output.

Which of the Following Principles Would Be Accepted by a Supply-Sider