Question

Which was a fundamental element of supply-side economics?

corporate tax hikes

economic deregulation

marginal tax hikes

tax hikes

strengthen economic regulations

Answer 1

One of the fundamental elements of supply-side economics is economic deregulation. Supply-side economics argues that economic growth can best be achieved by lowering barriers to production.

Step-by-step explanation:

Supply-side economics argues that economic growth can best be achieved by lowering barriers to production. One of the fundamental elements of supply-side economics is economic deregulation. By reducing business regulations, it allows for more flexibility in the economy, resulting in a greater supply of goods and services at lower prices. This theory developed as a response to the perceived failure of Keynesian policy to stabilize Western economies.

Answer 2

Strengthening economic regulations is a fundamental element of supply-side economics. The purpose of Supply-side economics is to achieve maximum economic growth through capital investment and the lowering of barriers on production. This type of economics also focuses on the consumers who can benefit to greater supplies of goods and services fixed at lower prices. Investment expansion will also lead to higher and better chances of employment for all.