Supply - side economics O A. promotes expansionary fiscal policy by increasing government spending. OB. promotes reducing taxes to create incentives to increase productivity. O C. promotes increasing taxes to create additional revenue for government spending. O D. is based on the Ricardian equivalence theorem. comp The Laffer curve shows that as tax rates increase O A. tax revenues decrease as the incidence of cheating on tax returns increases. O B. tax revenues remain unchanged. O C. tax revenues increase as more individuals and businesses have to pay taxes. OD. initially tax revenues increase, then decrease