Which economic theory suggests that tax breaks for the wealthy will benefit the entire economy?

Trickle-down economics is a theory that posits that benefits provided to the wealthy or businesses will eventually "trickle down" to the lower-income strata of society in the form of job creation, economic growth, and increased wealth. The underlying belief is that by lowering taxes on the wealthy and corporations, they will have more capital to invest back into the economy, thereby benefiting everyone.

This concept is grounded in the idea that the rich, when given more disposable income through tax breaks, will invest in startups, expand existing companies, or spend more on luxury goods. The expectation is that these activities will create jobs and greater economic opportunities for lower-income individuals. Thus, the approach emphasizes the importance of the wealthy's financial successes as a catalyst for broader economic prosperity.

In contrast, the other options presented focus on different economic indicators or strategies. Bottom-up economics emphasizes growth that starts with the working class, where investing in lower-income individuals directly boosts the economy. Supply-side economics is closely related but emphasizes policies aimed specifically at significantly reducing taxes to encourage production and investment. Demand-side economics focuses on boosting demand by increasing consumer spending, typically through government intervention. Each of these theories has distinct views on economic growth and the role of wealth distribution in stimulating the economy.