A basic contention of supply-side economists is that we should reduce the regulation of the production process.
By reducing regulation,the government reduces costs of production borne by businesses,shifting the AS curve to the right.

Question

Quizplus · Accepted Answer

Supply-side economists argue that reducing regulations can lead to lower costs of production for businesses, thus increasing their willingness and ability to supply more goods and services. This shift of the AS (aggregate supply) curve to the right can also lead to lower inflation and higher economic growth in the long run. However, this view is controversial, and there are debates about the potential negative effects of deregulation, such as environmental harm, worker safety, and market failures.

A Basic Contention of Supply-Side Economists Is That We Should