Briefly Explain the Theory of Supply-Side Economics

question 24

Essay

Briefly explain the theory of supply-side economics. How did that theory influence two policies in the Reagan administration?

---

Definitions:

Capital-intensive Production

A production process that requires a higher proportion of capital, such as machinery and equipment, in comparison to labor, to produce goods and services.

School Attendance

The act of being present at an educational institution during scheduled classes or activities, often monitored for legal or policy requirements.

Microfinance

Financial services, including loans, savings, insurance, and training, provided to individuals or small businesses lacking access to traditional banking services.

Developing World

A term used to describe countries with lower levels of industrialization, lower standards of living, and often lower levels of human development indicators compared to developed countries.