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Q20 (IAS/1998) Economy › Growth, Development, Poverty & Employment › Economic growth theories Answer Verified

The supply-side economics lays greater emphasis on the point of view of

Result
Your answer: —  Â·  Correct: A
Explanation

Supply-side economics emphasizes the role of producers and production as the primary driver of economic growth. Supply-siders argue that the willingness and ability of firms and workers to produce goods and services determines long-run output and living standards, placing supply ahead of demand in policy priority. The school focuses on enhancing production incentives—such as work, saving, investment, and risk-taking—through measures like tax cuts and deregulation to expand aggregate supply and economic efficiency [1]. Policy prescriptions are therefore targeted at producers and production capacity rather than direct consumer demand stimulation, making the producer viewpoint central to supply-side thought.

Sources

  1. [1] https://fee.org/articles/a-walk-on-the-supply-side/
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