ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In supply-side economics, the goal is to provide consumers with more products and service options to purchase by encouraging businesses to spend money on production and research. In contrast, demand-side economics focuses on helping consumers maximize their income by reducing taxes to spend more on goods and services.

Detailed explanation-2: -Demand-side policies to stimulate growth and employment may also be criticised for conflicting with the objectives of low inflation and balance of payments equilibrium. An expansionary policy may lea to higher inflation and a worsening current account.

Detailed explanation-3: -The advantages. Supply-side policies can help reduce inflationary pressure in the long term because of efficiency and productivity gains in the product and labour markets. They can also help create real jobs and sustainable growth through their positive effect on labour productivity and competitiveness.

Detailed explanation-4: -Supply-side economics believes that producers and their willingness to create goods and services set the pace of economic growth while demand-side economics believes that consumers and their demand for goods and services are the key economic drivers.