Tax cuts designed to stimulate work effort,saving,and investments are an example of supply-side policy.

Question

Quizplus · Accepted Answer

Tax cuts that aim to stimulate work effort, saving, and investment are one of the key components of supply-side policy. Supply-side policies focus on increasing the productive capacity of an economy by incentivizing production, investment, and innovation. Tax cuts are one way to incentivize these activities and are seen as a supply-side solution to economic growth.

Tax Cuts Designed to Stimulate Work Effort,saving,and Investments Are an Example