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Case Interview Prep

Category - Economics

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The current administration in the White House is interested in stimulating the economy through support of small and medium-sized enterprises. Using supply-side economics, the administration can:
  1. lower taxes
  2. lower interest rates
  3. increase imports
  4. lower unemployment
Explanation
Answer: A - Using supply-side economics, the administration can lower taxes.

Key Takeaway: Supply-side economics argues that growth in the economy can be stimulated by encouraging the supply side of the equation (production of goods). One way of doing so is to reduce taxes for small and medium-sized enterprises to help them purchase equipment and hire employees.
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