USA HISTORY

Detailed explanation-1: -What Is Supply-Side Economics? 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-2: -Supply side economics which centers on increasing overall supply that includes good and services that are produced by increasing availability of land, labor, and capital. Keynesian economics focuses on demand side economics and the multiplier effect. This is considered spending your way out of a recession.

Detailed explanation-3: -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-4: -The 4 economic theories are supply side economics, new classical economics, monetarism and Keynesian economics.

Detailed explanation-5: -In supply-side economics, the goal is to provide consumers with more products and service options to purchase by encouraging businesses to spend money on production and research. In contrast, demand-side economics focuses on helping consumers maximize their income by reducing taxes to spend more on goods and services.