Which of the following is one of the ways in which supply-side economists try to improve economic growth?
A.
by supporting unionization efforts
B.
by cutting environmental regulations***
C.
by cancelling international trade treaties
D.
by subsidizing fossil fuel-based industries
I agree.
The correct answer is B. by cutting environmental regulations. Supply-side economists believe that reducing regulations, particularly environmental regulations, can stimulate economic growth by reducing costs for businesses and increasing productivity.
The correct answer is B. By cutting environmental regulations.
Supply-side economists, also known as supply siders or advocates of supply-side economics, focus on policies aimed at increasing the supply of goods and services in the economy as a means to drive economic growth. One of the key ways they propose to achieve this is by reducing regulations, including environmental regulations.
To arrive at this answer, you would need to understand the basic principles of supply-side economics and the different policy measures proposed by supply siders. Then, you would evaluate each option and choose the one that aligns with the principles of supply-side economics and the goal of improving economic growth.
Option A, supporting unionization efforts, is not typically advocated by supply-side economists. It's more associated with demand-side economics, which focuses on boosting consumer demand to stimulate economic growth.
Option C, canceling international trade treaties, is also not a typical recommendation of supply-side economists. While supply-siders may prioritize domestic production and argue for fair trade deals, canceling international trade treaties entirely would have broad implications and is not commonly associated with supply-side economics.
Option D, subsidizing fossil fuel-based industries, could potentially be supported by supply-side economists as a means to increase the supply of energy and support the industry. However, it is not as aligned with supply-side economics as cutting environmental regulations, which aims to reduce barriers to business and promote economic growth.
Overall, by understanding the key principles and policy recommendations of supply-side economics, and evaluating each option in relation to those principles, you can identify the correct answer.