Answer:
The correct order of events
a1) Taxes are lowered
a2) Consumers and investors have more money
a3) Businesses prosper
a4) Businesses expand
a5) The economy grows
Explanation:
Supply side economics is an economic theory that suggested that lowering the tax to corporate, government will help in create interest in investing more to industry that will help in enhancing productivity and create jobs and eliminate inflation by slashing down prices.
This idea is an enormous piece of Ronald Reagan's financial arrangements during his administration. This turns into a focal point of "Reaganomics." He utilizes this strategy to drive the American economy during his 8 years of presidency.
The correct order of events
a1) Taxes are lowered
a2) Consumers and investors have more money
a3) Businesses prosper
a4) Businesses expand
a5) The economy grows
The government plays the role of promoting economic growth and stability of a country. It does this by providing legal and policy frameworks, a stable environment for business and investing in manpower and infrastructure.
In short, the government enforces economic laws and regulations.
Good luck :)
they use expansionary polices because it increases the level of aggregate demand,
