Principles of Macroeconomics / Unit 14 MAC 1319 short lesson, about 20 seconds
Supply-Side Economics
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The idea
Supply-side economics is a school arguing that fiscal policy should aim at long-run aggregate supply rather than demand, using lower tax rates to encourage work and investment incentives to build capital.
In practice
On its account both supply curves shift right, so potential output itself rises.
Where people slip
How large those effects are against demand-side ones is disputed, and the course leaves it disputed.
Your place on the trail
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Unlocks
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