ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is to make the whole economy better and have cheaper prices
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is to target major sectors of the economy and increase efficiency, competition and output
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is to increase AD and create a multiplier effect that boosts economic growth
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is to increase supply by allowing more imports into the economy
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Detailed explanation-1: -Supply side policies are government policies which seek to increase the productivity and efficiency of the economy. Supply side policies aim to increase long term competitiveness and productivity, and in the long run supply side policies can help increase the level of employment in an economy as firms expand and grow.
Detailed explanation-2: -The objective of supply-side policies is to increase the productive potential of the economy and to increase trend growth rates. Rather than the government directly generating economic growth, supply-side policies focus on achieving this growth through market-based forces.
Detailed explanation-3: -Supply-side policies are government attempts to increase productivity and increase efficiency in the economy. If successful, they will shift aggregate supply (AS) to the right and enable higher economic growth in the long-run.
Detailed explanation-4: -In supply-side economics, the goal is to provide consumers with more products and service options to purchase by encouraging businesses to spend money on production and research. In contrast, demand-side economics focuses on helping consumers maximize their income by reducing taxes to spend more on goods and services.
Detailed explanation-5: -Strategies for achieving economic goals of economic growth, full employment, and price stability have remained the same over time. Supply-side and demand-side economic policies have the same goals. The hallmark of President Ronald Reagan’s administration was supply-side economic policies.