The action of creating incentives to increase productivity which causes the aggregate supply curve to shift outward is referred to as
A)policy irrelevance proposition.
B)supply-side economics.
C)expansionary policy.
D)contractionary policy.

Question

Quizplus · Accepted Answer

Supply-side economics is the action of creating incentives to increase productivity, which causes the aggregate supply curve to shift outward. This policy maintains that lowering tax rates and decreasing regulations will encourage economic growth, which in turn will lead to an increase in tax revenue.

The Action of Creating Incentives to Increase Productivity Which Causes