Demand-Side Theory is an economic concept that emphasizes the role of consumer demand in driving economic growth. According to this theory, when consumers have more money to spend, they will purchase more goods and services, which in turn stimulates production and creates jobs. This increased demand can lead to higher levels of investment and overall economic activity. The theory suggests that government intervention, such as fiscal policy, can help boost demand during economic downturns. By increasing spending or cutting taxes, governments can encourage consumers to spend more, thereby helping to revive the economy. This approach contrasts with Supply-Side Theory, which focuses on boosting production and supply.