GS PrelimsEconomyEconomic Growth1998

The supply-side economics lays greater emphasis on the point of view of

A

producer

B

global economy

C

consumer

D

middle-man

Correct Answer: Option A

Explanation

1. The question asks about the main focus or point of view emphasized by supply-side economics. 2. Supply-side economics is a macroeconomic theory that argues economic growth can be most effectively created by lowering taxes and decreasing regulation. 3. The core idea is that lower barriers to production (lower taxes, less regulation) incentivize producers to produce (supply) more goods and services. 4. This increased supply, in theory, leads to lower prices and stronger economic growth. 5. Therefore, supply-side economics lays greater emphasis on the point of view of the producer, aiming to stimulate production/supply.

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