The best example of the influences of supply-side economists on economic policy is seen in the

Question

Quizplus · Accepted Answer

The tax cut of 1981, implemented by the Reagan administration, is the best example of the influences of supply-side economists on economic policy. Supply-side economists believed that cutting taxes would stimulate economic growth by incentivizing work, investment, and entrepreneurship, and the tax cuts of 1981 aimed to prove this theory. The policy argued that lower tax rates would lead to increased economic activity, which would generate more tax revenue in the long run. The tax cut of 1981 reduced marginal tax rates across the board and introduced accelerated depreciation rules to encourage investment. This policy marked a significant departure from the Keynesian approach, which had dominated economic policy since the Great Depression. The supply-side approach remained influential in economic policy throughout the 1980s and beyond.

The Best Example of the Influences of Supply-Side Economists on Economic