ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher federal taxes
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Trying to increase aggregate demand
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More government agencies and oversight
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Reduced government regulation
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Detailed explanation-1: -In supply-side fiscal policy, tax cuts, lower interest rates, and deregulation help foster increased production.
Detailed explanation-2: -Examples of Supply-Side Policies Reducing marginal tax rates. Lower tax rates on interest earned from savings. Higher tax credits on investment. Less government regulation, including the minimum wage.
Detailed explanation-3: -What Is Supply-Side Economics? Supply-side economics is a theory that maintains that increasing the supply of goods and services is the engine for economic growth. It advocates tax cuts as a way to encourage job creation, business expansion, and entrepreneurial activity.
Detailed explanation-4: -Which of the following best describes supply-side economics? Tax rates, particularly marginal tax rates, affect the incentive to work, save, and invest and, therefore, aggregate supply.
Detailed explanation-5: -Following are the policy prescriptions of supply-side economics: The Laffer Curve: Tax Rate Vs. Tax Revenue: Reduction in Government Spending: Monetary Policy: Increased Depreciation: Reduction in Welfare Benefits: Reducing Trade Union Power: Deregulation and Privatisation: More items