Question

Supply-siders' policy recommendations include: a. lower tax rates, spending increases, and decreased government regulation. b. lower tax rates, spending cuts, and increased government regulation. c. higher tax rates, spending increases, and increased government regulation. d. lower tax rates, lower resource prices, and decreased government regulation.

Answer 1

Answer:

The correct answer is D) Lower tax rates, lower resource prices, and decreased government regulation.

Explanation:

Supply-side economics policy focus on the supply. It tries to boost production so that consumer benefit from more goods at a lower price.

Supply-siders believe that lower tax rates result in more economic growth, which in turn actually increases government revenues, a theoritcal position known as the Laffer Curve.

Supply-siders also believe in deregulation. They find regulations to be an obstacle, especially for small businesses.