ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply-side economics is an economic theory that postulates tax cuts for the wealthy result in increased savings and investment capacity for them that trickle down to the overall economy.

Detailed explanation-2: -Key Takeaways. The trickle-down theory states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. Trickle-down economics involves less regulation and tax cuts for those in high-income tax brackets as well as corporations.

Detailed explanation-3: -Trickle-down economic theory is similar to supply-side economics. That theory states that all tax cuts spur economic growth. Trickle-down theory is more specific. It says targeted tax cuts work better than general ones.

Detailed explanation-4: -What Is Supply Side Policy? Supply Side Policy (SSP) refers to measures governments take to increase the availability or affordability of goods and services, along with generous tax reform, which refers to tax cuts and changes in tax laws that may encourage or discourage productive behavior.