Supporters of supply-side economics are of the opinion that cuts in taxes will produce ___________ in potential GDP and that total tax revenue will __________.

Question

Quizplus · Accepted Answer

Supporters of supply-side economics believe that cuts in taxes will incentivize individuals and businesses to work more, invest more, and innovate more, leading to higher potential GDP. This increase in economic activity is expected to generate more taxable income, resulting in an overall increase in total tax revenue despite lower tax rates.

Supporters of Supply-Side Economics Are of the Opinion That Cuts