Supply-side economists believe that a reduction in the tax rate Group of answer choices
shifts the aggregate supply curve to the right
would decrease consumption
provides no incentive for people to work more always
decreases government tax revenue

The law of supply states that an increase in price will result in an increase in quantity of a good supplied. If however other factors except from price changes it will cause a shift in supply to the right or to the left.

If the government decides to reduce tax it means there will be greater savings and more funds can be channelled to improving productivity.

This will result in increase in supply at all price levels, that is a shift in supply to the right.

This is illustrated in the attached diagram.

Supply-side economists believe that a reduction in the tax rate Group of answer choices shifts the aggregate supply curve to the right would decrease consumption provides no incentive for people to work more always decreases government tax revenue

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Supply-side economists believe that a reduction in the tax rate Group of answer choices
shifts the aggregate supply curve to the right
would decrease consumption
provides no incentive for people to work more always
decreases government tax revenue