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2.5 Fiscal policy and supply-side policies

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Question 27

Which one of the following statements about the distinction between supply-side policies and supply-side improvements is correct?

Supply-side policies only affect the rate of economic growth in the short run.

Supply-side improvements can occur independently of government intervention.

Government-led supply-side policies never carry an opportunity cost for the public finances.

Supply-side policies primarily focus on managing the level of aggregate demand to control inflation.

2.5 Fiscal policy and supply-side policies Questions

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