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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.7
How do supply-side policies stimulate demand according to supply-side economists?
Lower taxes and higher profits encourage risk-taking and increase investment
Supply-side policies have no impact on demand
Lower taxes and higher income increase worker happiness and motivation
Supply-side policies primarily affect government spending
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AP Macroeconomics - 5.7 Public Policy and Economic Growth
Key terms
Supply-Side Policies
Stimulate demand
Supply-side economists
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Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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