ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher taxes on corporate profits.
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Longer duration of unemployment benefits.
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Removal of investment tax credits.
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Lower tax rates on interest earned from savings.
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Detailed explanation-1: -The three pillars of supply-side economics are tax policy, regulatory policy, and monetary policy.
Detailed explanation-2: -According to supply-side economics, consumers will benefit from greater supplies of goods and services at lower prices, and employment will increase. Supply-side fiscal policies are designed to increase aggregate supply, as opposed to aggregate demand, thereby expanding output and employment while lowering prices.
Detailed explanation-3: -Supply-side economics favors more decreases in marginal tax rates and lower income taxes to encourage employees to work additional hours. The concept incentivizes labor through higher net income.
Detailed explanation-4: -Which of the following would be considered a supply-side policy? The correct answer is: Investment tax credits for businesses to encourage investment.