A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
Correct answer: A. supply side economists
- A. supply side economists
- B. neo-Keynesian economists
- C. rational -expectations economists
- D. New classical economists
Explanation
Supply-side economists focus on how high taxes and regulation weaken incentives to work, save and invest, thereby reducing productive capacity and aggregate supply.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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