Supply-Side Economics and Reaganomics · US History

What was a key difference between Keynesian economics and supply-side economics?

  1. Keynesian focuses on demand, supply-side focuses on production
  2. Keynesian theory focuses on supply, supply-side focuses on demand
  3. Both focus on taxation only
  4. Both reject government intervention
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Correct answer: Keynesian focuses on demand, supply-side focuses on production

Keynesian economics emphasizes boosting demand through government spending. Supply-side economics focuses on increasing production through tax cuts and deregulation.

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