ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increased government spending
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Increased education and training for workers
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Increased money supply
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Decreased rates of interest
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Detailed explanation-1: -Interventionist supply-side policies can provide direct support for those sectors of the economy that are important for economics growth such as health and education spending and infrastructure investment.
Detailed explanation-2: -Supply-side economics holds that increasing the supply of goods translates to economic growth for a country. In supply-side fiscal policy, tax cuts, lower interest rates, and deregulation help foster increased production.
Detailed explanation-3: -Examples of Supply-Side Policies Reducing marginal tax rates. Lower tax rates on interest earned from savings. Higher tax credits on investment.
Detailed explanation-4: -The three pillars of supply-side economics are tax policy, regulatory policy, and monetary policy.
Detailed explanation-5: -There are two different types of supply-side policies: market-based and interventionist. Free market supply-side policies are policies that encourage competition, market reform, and create incentives. Examples of free-market policies are privatisation, deregulation, and trade liberalisation.