Supply-Side Economics: Phoenix, Zac and Dian

What is the main idea behind supply-side economics?

• Government intervention is necessary for economic stability.

• Reducing government spending drives economic growth.

• Increasing consumer demand drives economic growth.

• Increasing the supply of goods and services drives economic growth.

Which U.S. President is most associated with supply-side economics?

• Barack Obama

• John F. Kennedy

• Ronald Reagan

• Bill Clinton

What is another term for supply-side economics?

• Keynesian economics

• Trickle-down economics

• Monetarism

• Classical economics

What are the three pillars of supply-side economics?

• Tax policy, regulatory policy, and monetary policy

• Regulatory policy, labor policy, and fiscal policy

• Fiscal policy, trade policy, and labor policy

• Monetary policy, fiscal policy, and trade policy

What is the core point of supply-side economics?

• Government spending is the key driver of economic growth.

• Consumer confidence is the key driver of economic growth.

• Production is more important than demand in determining economic growth.

• Demand is more important than supply in determining economic growth.

What does the supply-side theory contrast with?

• Behavioral economics

• Monetarism

• Keynesian theory

• Classical economics

What does a pure Keynesian believe?

• Producers set the pace of economic growth.

• Consumers and their demand for goods and services are key economic drivers.

• Tax cuts for the wealthy stimulate economic growth.

• Supply is more important than demand.

What is the argument that supply creates its own demand?

• Government intervention is necessary to balance supply and demand.

• Demand is the primary driver of economic growth.

• Excess inventory will lead to lower prices and increased consumer purchases.

• Overproduction and under-production are sustainable phenomena.

What do supply-siders believe about tax policy?

• Higher capital-gains tax rates lead to more productive capital deployment.

• Tax policy has no impact on economic growth.

• Lower marginal tax rates induce workers to prefer work over leisure.

• Higher taxes lead to greater economic growth.

What is the supply-side view on regulatory policy?

• Increased regulation leads to higher economic growth.

• Regulatory policy has no impact on economic growth.

• A smaller government and less intervention in the free market are preferred.

• Government intervention is necessary for economic stability.