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2.5 Fiscal policy and supply-side policies

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Question 15

A government aims to boost the long-run potential growth rate of the economy through interventionist supply-side policies. To achieve this objective, the government would most likely increase its spending on:

wage increases for existing public sector administrators.

direct financial bailouts for stagnant domestic manufacturers.

state funding for technological research and development (R&D) hubs.

index-linked increases to state pension payments.

2.5 Fiscal policy and supply-side policies Questions

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