The aim of supply-side economics is to:
A)increase government spending to stimulate aggregate supply.
B)stimulate exports to increase the balance of payments.
C)decrease wages to make production cheaper.
D)lower taxes to increase the supply of resources.
E)reduce both the inflation and unemployment problems through increases in taxes.

Question

Quizplus · Accepted Answer

The aim of supply-side economics is to increase the supply of resources, which can be achieved through lowering taxes, providing incentives for investment and entrepreneurship, and reducing regulations on businesses. The idea is that by making it easier and cheaper for businesses to produce goods and services, they will increase their output and create more jobs, ultimately leading to economic growth. Lowering taxes is one of the main strategies used in supply-side economics to increase the supply of resources.

The Aim of Supply-Side Economics Is To