supply-side economics

supply-side economics definition - business

supply-side economics

The school of economics that concentrates on devising and promoting ways to increase the output of goods and services in the long run. The defining idea of supply-side economics is that marginal tax rates should be reduced to provide incentives to supply additional labor and capital, and thereby promote long-term growth.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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