Essay: Macroeconomics-Supply side economists

11 Oct

Essay: Macroeconomics-Supply side economists

Sample Essay

This is a theory that proposes consumer centered approach to improving the economy. It is derived from the thought that economic growth can easily be achieved by minimizing the barriers that obstruct people from producing goods and services (Arnold 76). Parameters such as income tax and capital gains tax are adjusted hence allowing greater flexibility.

As much as many economists criticize this model, it has however established a favorable production environment commonly known as ‘low tax without cost’. This attempts to reduce barriers of production hence increasing the overall production. This approach of correcting deficits has resulted in a constant supply of goods to the markets thus stabilizing market prices. Marginal tax rates that are lower are used to promote the general growth o the economy hence used to correct trade deficits in the internal business circus.

The national economic policies

This councils are concerned with how to come up with strategies that will be used to drive the economy. In the USA it has four major roles of coordinating policy making for both domestic and international economic issue, advises the authorities in power on economic matters, ensure consistency with goal of the government and monitor implementation of the proposed policies ion economy (Heijdra, & Ploeg 22). Good economic policies help correct both budget and trade deficits.

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