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Why is supply side not used more in the federal government's economic policy?

Why is supply side not used more in the federal government's economic policy?

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Answer #1

According to Keynesian theory of Economy demand is the driving factor for the economy. If any changes in the demand of the consumer will push the economy into recession and so government always intervene with its Fiscal and monetary policies to increase or reduce the demand of the consumer. Consumption is the most important factor for a GDP. Consumption is always depend on the demand of consumer.

Hence supply side of Economics doesn't decide the growth of the economy like the demand side. So supply side is not used more in government economic policy.

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