Which one of the following statements regarding supply-side policies is correct?
Supply-side policies
aim to increase the productive capacity of the economy by improving the performance of individual markets.
only involve market-based measures, such as deregulation, and never include government intervention.
have very short time lags, making them highly effective for managing short-run cyclical fluctuations.
focus exclusively on reducing the volume of imports to improve the current account balance.
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.