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2.5 Fiscal policy and supply-side policies

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Question 26

When an economy is operating at its full capacity level of output, a primary advantage of successful supply-side policies is that they

immediately reduce inequality across all regions.

restrict the growth of the monetary base to target inflation.

automatically reduce the government's budget deficit.

enable an expansion of real output without causing inflationary pressures.

2.5 Fiscal policy and supply-side policies Questions

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