Which of the following attributes of fiscal policy will most likely be stressed by a proponent of supply-side economics?
A) the impact of budget deficits on interest rates and aggregate demand
B) the impact of government spending on aggregate demand, output, and employment
C) the impact of marginal tax rates on the supply and productivity of resources
D) the impact of budget deficits on the rate of taxation in the future

Question

Quizplus · Accepted Answer

Supply-side economics emphasizes the role of marginal tax rates in incentivizing production and work effort. Proponents of this school of thought prioritize tax cuts and other measures that increase the incentives for individuals and businesses to work and invest, ultimately leading to higher levels of economic growth and productivity. Therefore, Choice C, which emphasizes the impact of marginal tax rates on resource supply and productivity, is the attribute of fiscal policy that would be most stressed by a supply-side economist.

Which of the Following Attributes of Fiscal Policy Will Most