Demand-Side Economics
Demand-side economics is an economic theory that emphasizes the importance of consumer demand in driving economic growth. It suggests that increasing demand for goods and services leads to higher production, job creation, and overall economic expansion. This approach often advocates for government intervention, such as fiscal policies that boost consumer spending through tax cuts or increased public services.
Key components of demand-side economics include the role of consumers and government spending. By focusing on stimulating demand, this theory aims to address issues like unemployment and economic downturns. It contrasts with supply-side economics, which prioritizes boosting production and supply as the main driver of economic growth.