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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.
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.
Both approaches stress the importance of reducing inflation as their primary goal.
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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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