Which economists believe a decrease in marginal tax rates will ultimately cause the economy to move from point B to point D in Figure 18.3?

Question

Quizplus · Accepted Answer

Supply-siders believe that decreasing marginal tax rates will incentivize individuals to work and invest more, leading to economic growth and eventually moving the economy from point B to point D in Figure 18.3. Monetarists focus more on monetary policy and controlling the money supply, while Keynesians and modern Keynesians focus on fiscal policy and government intervention in the economy.

Which Economists Believe a Decrease in Marginal Tax Rates Will