Those who believe in the theory of ________ maintain that the government's role in regulating the economy should be focused on lowering taxes and creating incentives for a more productive and efficient use of resources.

Question

Quizplus · Accepted Answer

The theory described in this sentence is that of supply-side economics, which advocates for lower taxes and incentivizing production in order to stimulate economic growth. Keynesianism, on the other hand, argues for active government intervention in the economy during times of recession or stagnation through methods such as increased government spending. Fiscalism is not a well-known economic theory, and inflation refers to a general increase in prices rather than a specific economic philosophy. Laissez-faire capitalism is similar to supply-side economics but advocates for a complete lack of government intervention in the economy.

Those Who Believe in the Theory of ________ Maintain That