Question

2. Which statement most accurately describes supply-side economics?

Higher taxes on businesses results in the expansion of industry

Ending government subsidization of businesses results in the expansion of industry

O

Lower taxes on businesses results in the expansion of industry

O

Government subsidization of businesses results in the expansion of industry

Answer 1

Lower taxes on businesses results in the expansion of industry

Step-by-step explanation:

Supply-side economics is one of the economic theory whereby the lowering taxes on corporations can help the government to stimulate investment in industry, thereby raising production.

This would in turn bring down prices of goods and services while at the same time help in the control inflation.