Question

Which is a key premise of supply-side economics?

A.Giving the government more money to operate by raising taxes will reduce deficits.

B.Taking measures to encourage growth in the production of goods and services will result in more jobs and tax revenue.

C.Allowing businesses to fail through the normal operation of the principles of supply and demand will result in depression.

D.Providing businesses with additional capital through government-financed programs will prevent recession.

Answer 1

B.

Step-by-step explanation:

Answer 2

B. Taking measures to encourage growth in the production of goods and services will result in more jobs and tax revenue

Supply side economics was anchored on the premise that economic growth can be most effectively created by lowering taxes and decreasing regulation. This would benefit consumers through a greater supply of goods and services at lower prices and result in the increase in employment.