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Supply-side economists believe that a reduction in the tax rate a. always decrease government tax revenue. b. would decrease consumption. c. provides no incentive for people to work more. d. shifts the
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Supply-side economists believe that a reduction in the tax rate a. always decrease government tax revenue. b. would decrease consumption. c. provides no incentive for people to work more. d. shifts the aggregate supply curve to the right.

User Anuj Sharma
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13 votes

Answer: D. shifts the aggregate supply curve to the right.

Step-by-step explanation:

Supply side economics refers to the macroeconomic theory which states that the economic growth in an economy can be improved by the reduction in taxes and decrease in regulations.

Such Economists believe that this is vital as the consumers will benefit as there'll be an increase in the supply of goods from the manufacturers. Also, there'll be reduction in prices due to less taxes being paid. Also, there'll be an increase in employment.

User Laetan
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