Question

Which of the following measures would a president adhering to supply-side economic principles most likely employ during an economic recession?
Choose 1 answer:
Choose 1 answer:
(Choice A) A national budget with significant cuts in federal spending on entitlement programs like Medicaid
A
A national budget with significant cuts in federal spending on entitlement programs like Medicaid
(Choice B) An executive order to increase the number of dollars in circulation in the economy
B
An executive order to increase the number of dollars in circulation in the economy
(Choice C) Legislation that creates a new jobs training program for those who are currently unemployed
C
Legislation that creates a new jobs training program for those who are currently unemployed
(Choice D) A national budget that increases money sent to state governments to fix infrastructure problems like filling potholes and finishing highways
D
A national budget that increases money sent to state governments to fix infrastructure problems like filling potholes and finishing highways

Answer 1

A president adhering to supply-side economic principles would most likely employ:

**(Choice A) A national budget with significant cuts in federal spending on entitlement programs like Medicaid.**

Supply-side economics emphasizes reducing government spending, lowering taxes, and deregulating the economy to encourage investment and economic growth. While options B, C, and D may involve government intervention or spending, they do not align with the core tenets of supply-side economics as closely as the significant cuts to entitlement programs would.