Question

Using government policies to increase the amount of goods and services available through incentives to work, save, and produce is called __________.

1) monetary policy
2) laissez-faire economics
3) keynesianism
4) supply-side economics

Answer 1

The correct answer is supply-side economics. This theory suggests that government policies should focus on keeping revenue and economic decisions in the hands of businesses and consumers by lowering taxes and regulations on businesses to stimulate economic growth.

Step-by-step explanation:

The correct answer is 4) supply-side economics. Supply-side economics is an economic theory that suggests government policies should focus on keeping revenue and economic decisions in the hands of businesses and consumers. It advocates for lowering taxes and regulations on businesses to stimulate economic growth. This approach is different from Keynesian economics, which emphasizes government spending to stimulate consumption.

For example, supply-siders argue that reducing taxes and regulations will incentivize businesses and individuals to work, save, and produce more goods and services. This increased production would then lead to economic growth and create more opportunities for employment and investment.