To produce a rightward shift in the aggregate supply curve,supply-siders argue for
A) a large surplus of unemployed workers to hold down wage rates.
B) large government deficits to hold down aggregate demand.
C) higher taxes on personal and corporate incomes.
D) financial incentives to encourage additional saving.
E) a money supply that is absolutely fixed over time.

Question

Quizplus · Accepted Answer

Supply-siders believe that financial incentives, such as tax cuts or policies that encourage saving, can lead to increased investment. This investment, in turn, boosts productivity and shifts the aggregate supply curve to the right.

To Produce a Rightward Shift in the Aggregate Supply Curve,supply-Siders