A problem with supply-side fiscal policies is that they:

Question

Quizplus · Accepted Answer

Supply-side fiscal policies, such as tax cuts and deregulation, aim to increase production and decrease costs in order to stimulate economic growth. However, the effects of these policies may take longer to be felt than demand-side fiscal policies, such as government spending and transfer payments. Additionally, supply-side policies may not address underlying demand issues and could potentially lead to inflation if the increased production fails to meet the demand.

A Problem with Supply-Side Fiscal Policies Is That They