What are some of the policy tools used by supply-side economists, and how do they work?
What will be an ideal response?
Supply-side policy tools include a decrease in marginal tax rates on both labor and businesses, a decrease in government regulation, an increase in the development of human capital, and an increase in the development of infrastructure, to name a few. A decrease in marginal tax rates and a decrease in government regulation both allow producers to enjoy greater after-tax profits. A decrease in marginal tax rates on labor causes a greater incentive to enter the labor force. This provides an incentive for businesses to produce more, and AS increases. Increased development of human capital and infrastructure allows the production process and distribution of goods to be more efficient. This also increases the level of output and AS.
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What does the slope of the credit supply curve imply? When do movements along a credit supply curve occur?
What will be an ideal response?
If I voluntarily end my employment, the Bureau of Labor Statistics would consider me to be
A) a job loser. B) a job leaver. C) a discouraged worker. D) a reentrant.
____________ solves the mutual coincidence of wants problem
a. Barter b. Mercantilism c. Free trade d. Money
The rise in agricultural discontent in the late 19th century can be best explained by
a. the rise of railroad cartels in the Midwest. b. the rise of global market forces not easily observed by the farmers. c. a decline in the value of agricultural exports from 1870 to 1900. d. predatory lending by banks, resulting in increased farm repossessions.