Supply-side economists believe that:

Question

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Supply-side economists advocate for policies that reduce government regulation and intervention in the economy, in order to promote economic growth and increase productivity. They believe that a decrease in regulation, particularly in areas such as taxes, labor laws, and environmental regulations, can lead to a rightward shift in the aggregate supply curve, as producers are incentivized to invest more and create more output. This, in turn, can lead to lower prices and higher employment levels. Supply-side economists do not believe that decreased regulation will lead to abuse of consumers or that government regulation is necessary for long-run economic growth.

Supply-Side Economists Believe That