ENTREPRENEURSHIP

Detailed explanation-1: -In the short term, governments may focus on macroeconomic stabilization-for example, expanding spending or cutting taxes to stimulate an ailing economy, or slashing spending or raising taxes to combat rising inflation or to help reduce external vulnerabilities.

Detailed explanation-2: -fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures.

Detailed explanation-3: -The supply-side theory is a macroeconomic theory that stresses the importance of increasing production through corporate tax cuts, deregulation, and low capital borrowing rates, to boost economic growth.

Detailed explanation-4: -Key Takeaways. Since the marginal propensity to consume is less than 1, a tax cut will lead to a household to consume more and save more. National savings, the sum of public and private savings, will generally decrease when there is a tax cut.