ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Proportional, progressive, and regressive taxes.

Detailed explanation-2: -There are three types of fiscal policy. They are neutral policy, expansionary policy, and contractionary policy.

Detailed explanation-3: -Supply-side economics aims to bolster an economy by implementing policies that will lead to an increased supply of goods and services and subsequent economic growth such as: Reducing corporate income tax rates to provide companies with more cash for reinvestment.

Detailed explanation-4: -The tax multiplier has a negative sign, since a decrease in taxes increases consumption, aggregate expenditure, and income, while a tax increase decreases them.