USA HISTORY

Detailed explanation-1: -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-2: -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-3: -Supply-side economics aims to bolster an economy by implementing policies that will lead to an increased supply of goods and services and subsequent economic growth such as: Reducing corporate income tax rates to provide companies with more cash for reinvestment.

Detailed explanation-4: -Examples of Supply-Side Policies Reducing marginal tax rates. Lower tax rates on interest earned from savings. Higher tax credits on investment. Less government regulation, including the minimum wage.

Detailed explanation-5: -A damaged supply side necessarily causes inflation, all other things being equal. But when the entire supply side of an economy is damaged, there is insufficient supply of goods and services in general to meet demand. So there is inevitably a rise in the general price level.