Supply-side economists argue that decreasing marginal tax rates

Question

Quizplus · Accepted Answer

Supply-side economics is based on the idea that decreasing marginal tax rates incentivizes individuals and businesses to work harder and invest more, leading to an increase in productivity. This increase in productivity shifts the aggregate supply (AS) curve to the right, resulting in a higher level of output and lower price levels. Therefore, choice A is the correct answer.

Supply-Side Economists Argue That Decreasing Marginal Tax Rates