Which of the following best describes supply-side economics?
A) Labour productivity affects aggregate supply.
B) Education affects labour productivity which affects aggregate supply.
C) Education affects the incentive to work, save, and invest and, therefore, aggregate supply.
D) Tax rates, particularly marginal tax rates, affect the incentive to work, save, and invest and, therefore, aggregate supply.
E) Government spending on products produced by private firms increases aggregate supply.
Correct Answer:
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