ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An increase in the money supply.
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Higher taxes on research and development.
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Lower taxes on income.
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An increase in government spending.
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Detailed explanation-1: -Supply-side fiscal policy uses privatisation, deregulation, tax cuts, and free trade agreements to increase aggregate supply and economic efficiency. An example of supply-side fiscal policy is a cut in income tax. The tax cut will motivate workers to work longer because they can earn more with lower taxes.
Detailed explanation-2: -In supply-side fiscal policy, tax cuts, lower interest rates, and deregulation help foster increased production.
Detailed explanation-3: -There are three components of the Fiscal Policy of India: Government Receipts. Government Expenditure. Public Debt.
Detailed explanation-4: -In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country’s economy.