Which of these is a supply-side approach to increase growth?

A) Spending on the construction and repair of state highways
B) Providing tax benefits to start-up companies
C) Investing in the production of arms and ammunitions
D) Replacing old aircrafts with new fighter planes
E) Increasing transfer payments to retirees

Supply-Side Approach

An economic theory that advocates reducing barriers and taxes on the producers of goods and services to stimulate production and economic growth.

Tax Benefits

are reductions in tax obligations, given to encourage certain activities or investments, such as deductions, exemptions, or credits.

Start-Up Companies

New businesses that are in the initial stages of operation, often characterized by innovative products or services and high growth potential.