According to supply-side economists, a policy that ______ will cause productivity to increase, which shifts the aggregate supply curve to the right.

Question

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Supply-side economists argue that reducing marginal tax rates incentivizes individuals and businesses to work, invest, and engage in productive activities more efficiently, thereby increasing overall economic productivity. This increase in productivity shifts the aggregate supply curve to the right, indicating a greater quantity of goods and services supplied at each price level.

According to Supply-Side Economists, a Policy That ______ Will Cause