Question

Nancy is an economist who believes that the best way to grow the economy is through tax cuts to increase the incentive to work and invest. Though these tax cuts might initially increase the budget deficit, Nancy is convinced that the economic growth that results will actually increase government tax revenue. Nancy is best described as a _____.'

Answer 1

supply-side economist

Step-by-step explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

Supply-side economist can be defined as economists who believes that the ability and willingness of the producers of goods and services to manufacture or produce sets the pace for the economic growth of a country.

This ultimately implies that, increasing the supply of goods and services would cause an economic growth for a country.

Generally, supply-side economist are of the opinion that one of the best way to grow a country's economy is by introducing tax cuts so as to increase the incentive for households to work and invest.

However, these tax cuts might initially cause the budget deficit to rise, supply-side economist are convinced that the consequent economic growth will give rise to an increase in government tax revenue.

Hence, Nancy is best described as a supply-side economist in this scenario.