The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is typically referred to as
A)demand-side economics.
B)Ricardian equivalence.
C)supply-side economics.
D)Keynesian economics.

Question

Quizplus · Accepted Answer

The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is a foundational principle of supply-side economics. Demand-side economics, on the other hand, focuses on stimulating demand through government spending or other measures. Ricardian equivalence is a theory that suggests that government deficits may not have any impact on the economy because individuals and firms adjust their behavior to offset any effects. Keynesian economics, named after economist John Maynard Keynes, emphasizes the importance of government intervention to stabilize the economy during recessions.

The Notion That a Decline in Tax Rates and Other