Question

Supply-side economics attempts to stimulate output and lower unemployment by

A).reducing taxes to stimulate investment and consumer spending.
B.)increasing government spending on public works projects.
C.)increasing government spending during times of high employment
D.)providing social programs as a safety net for the unemployed.

Answer 1

Supply-side economics attempts to stimulate output and lower unemployment by reducing taxes to stimulate investment and consumer spending.

What is supply-side economics?

Supply-side economics is a economics theory that focuses on the supply of labour and goods. It postulates that taxes and benefits can be used as incentives to stimulate the economy.

Supply-side economics was introduced by Arthur Laffer and implemented by Pres. Ronald Reagan in the 1980s.