Asked by Caden Coulson on Apr 27, 2024

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Supply-side economics tends to focus on ________.

A) government spending
B) price controls
C) monetary policy
D) increasing productive capacity

Supply-Side Economics

An economic theory that suggests economic growth can be most effectively created by lowering taxes and decreasing regulation, to increase production.

Increasing Productive Capacity

The process or actions taken to enhance the capability of a company or economy to produce goods and services.

Monetary Policy

The process by which a central bank controls the money supply in the economy, usually with the goal of controlling inflation, interest rates, and stimulating economic growth.

  • Understand the concept of supply-side economics and its focus on increasing productive capacity.
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JR
jenna roderickMay 03, 2024
Final Answer :
D
Explanation :
Supply-side economics emphasizes increasing productive capacity by promoting investment, lowering taxes on businesses and individuals, and reducing regulations that may hinder economic growth. The theory suggests that by improving the supply of goods and services, economic growth and employment will increase. The other options, government spending, price controls, and monetary policy, are more closely associated with demand-side economics.