Question

Economic Systems Quick Check
5 of 55 of 5 Items
Question
Use the table to answer the question.

Demand-Side Economics Supply-Side Economics
Premise: Economic activity is driven by demand from consumers, businesses, and government. Premise: Economic activity is driven by business innovation and investment.
Policy Assumptions: When demand from consumers and businesses is low, government spending can spur economic activity, employment, and growth. Policy Assumptions: Taxes and government regulations are the primary impediments to economic activity, employment, and growth.
Policies: Tax cuts for middle- and low-income individuals, government spending, and increased support for social welfare programs are standard policies. Policies: Tax cuts for large businesses and wealthy individuals, reduced regulations, and cuts to social welfare programs are standard policies.
Contrast demand-side and supply-side economics by examining this chart. Which of the following statements is correct?

(1 point)
Responses

Supply-side economics advocates increased government regulation.
Supply-side economics advocates increased government regulation.

Demand-side economics advocates government spending when consumer and business demand is low.
Demand-side economics advocates government spending when consumer and business demand is low.

Supply-side economics advocates strong social welfare programs for the most vulnerable in society.
Supply-side economics advocates strong social welfare programs for the most vulnerable in society.

Demand-side economics advocates tax cuts for large businesses and wealthy individuals.

Answer 1

Demand-side economics advocates tax cuts for large businesses and wealthy individuals.