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AP US Government
Unit 4 – American Political Ideologies and Beliefs
Topic 4.9
In what way do the principles of supply-side economics contrast with those of demand-side economics?
Both methods focus primarily on controlling interest rates rather than influencing consumer behavior or business investment decisions directly.
Both approaches stress the importance of reducing inflation as their primary goal.
Supply-side economics promotes government spending whereas demand-side economics advocates for lowering taxes.
Supply-side economics focuses on increasing production through tax cuts and deregulation while demand-side economics emphasizes stimulating consumer spending through fiscal policy.
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AP US Government - 4.9 Ideology and Economic Policy
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Supply-side Economics
Demand-side economics
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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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