Question

Neoclassical Counterrevolution -

Answers for two questions (Reason for underdevelopment and the cure for it)

Supply Side Economics

Minimum State or Efficient State (Post-Washington Consensus)

Answer 1

Supply Side Economics is better known to some as "Reaganomics", or the "tickle- down" policy espoused by 40th U.S President Ronald Reagan. Like most economics theories, supply side economics tries to explain both macroeconomic phenomena and based on these explanations offer policy prescriptions for stable economic growth. In general, the supply side theory has three pillars: tax policy, regulatory policy, and monetary policy. It is a macroeconomic theory that argues economic growth can be most effectively created by lowering taxes and decreasing regulation. According to supply side economics, consumers will then benefit from a greater supply of goods and services at lower prices and employment will increase.