The concept that a decline in tax rates and other incentives will induce individuals and firms to increase productivity is typically referred to as

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The concept that reducing tax rates and other incentives will increase productivity is known as supply-side economics. This theory argues that by providing incentives for individuals and firms to work harder and invest more, economic output and overall prosperity will increase, which in turn will lead to increased tax revenues for the government. This approach is often contrasted with demand-side economics, which emphasizes the importance of stimulating consumer spending and aggregate demand to boost economic growth. Ricardian equivalence and Keynesian economics are different economic theories that focus on the impact of government spending and public debt on the economy.

The Concept That a Decline in Tax Rates and Other