The idea that creating incentives for individuals and firms to increase productivity leading to an increase in long-run aggregate supply is
A)supply-side economics.
B)demand-side economics.
C)the Ricardian equivalence theorem.
D)consistent with crowding out.

Question

Quizplus · Accepted Answer

The idea of creating incentives to increase productivity aligns with supply-side economics, which focuses on increasing the production of goods and services in order to promote economic growth. This theory argues that by increasing productivity and supply, there will be more goods and services available, leading to lower prices and higher levels of economic output.

The Idea That Creating Incentives for Individuals and Firms to Increase