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2.5 Fiscal policy and supply-side policies

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Question 24

Following a sustained period of investment-led supply-side reforms, an economy experiences a successful expansion of its productive capacity. All other things being equal, which combination of changes in macroeconomic indicators is the most likely outcome of these reforms?

Unemployment rate: Decreasing; Domestic price level: Decreasing; Net export performance: Improving

Unemployment rate: Increasing; Domestic price level: Increasing; Net export performance: Deteriorating

Unemployment rate: Decreasing; Domestic price level: Increasing; Net export performance: Improving

Unemployment rate: Increasing; Domestic price level: Decreasing; Net export performance: Deteriorating

2.5 Fiscal policy and supply-side policies Questions

  1. A Level
  2. /Economics
  3. /2.5 Fiscal policy and supply-side policies