Practice mode Miscellaneous Economics

What do supply-side theories claim?

Correct answer C. A decline in aggregate supply is responsible for economic downturns

Explanation

Supply-side economists argue that recessions arise when aggregate supply falls, and recommend tax cuts and deregulation to boost production and investment.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.