ECONOMICS
SUPPLY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The higher taxes are, the more economic growth there will be.
|
|
|
The higher taxes are, the less economic growth there will be.
|
|
|
In times of accelerated economic contraction, higher taxes can help grow the economy.
|
|
|
In times of accelerated economic growth, higher taxes can prevent the economy from overheating.
|
Detailed explanation-1: -Key Takeaways: Supply-side economics holds that increasing the supply of goods translates to economic growth for a country. In supply-side fiscal policy, tax cuts, lower interest rates, and deregulation help foster increased production.
Detailed explanation-2: -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-3: -Supply-side economics focuses on increasing the aggregate supply, contrary to demand-side economics that focuses on increasing aggregate demand, to increase employment, and reduce prices in the market.
Detailed explanation-4: -They argued that if people could keep a higher fraction of their income, people would work harder to earn more income. Even though tax rates would be lower, income would rise by so much, they claimed, that tax revenues would rise.
Detailed explanation-5: -Supply side constraints, which are now being referred to as a major problem, simply mean that production in the economy is unable to keep pace with rising demand due to a variety of factors such as inadequate infrastructure, lack of credit, availability of labour and availability of technology.