Answer in Microeconomics for Uzzafir Raza #112620
April 21st, 2023
Supply-side economics is the theory that says increased production drives economic growth. The factors of productions are capital, labor, entrepreneurship, and land.Supply-side fiscal policy focuses on creating a better climate for businesses through tax cuts and deregulation.Companies that benefit from these supply policies are able to hire more workers because of reduced union effects and reduced taxes. The resultant job growth creates more demand which further boosts the economy.