What is supply-side economics primarily focused on?

Supply-side economics is primarily focused on the idea that economic growth can be most effectively fostered by lowering taxes and decreasing regulation. The rationale behind this approach is that reducing tax burdens on individuals and businesses encourages investment, innovation, and production, ultimately leading to job creation and a more robust economy. By allowing producers to keep more of their earnings, supply-side economics posits that businesses will have more capital to invest in expanding operations, which can enhance productivity.

Decreasing regulations is also seen as a way to promote economic activity; fewer constraints on businesses can lead to a more dynamic market environment, allowing firms to respond more quickly to consumer needs and preferences. This emphasis on stimulating supply, rather than directly boosting demand through government spending, is a cornerstone of supply-side economic theory.

In contrast, other approaches mentioned in the options involve demand-side strategies, which focus on government spending or direct consumer support, rather than stimulating the production capacity of the economy. This makes option B the main tenet of supply-side economics, which aims to create a favorable environment for production and investment.