A government implements two measures to increase the productive capacity of the economy:
Measure 1: Direct state funding for a new nation-wide high-speed fibre-optic broadband network. Measure 2: A reduction in the rate of corporation tax paid by all small and medium-sized enterprises.
Which of the following correctly classifies these measures?
Measure 1 is an interventionist supply-side policy; Measure 2 is a market-based supply-side policy
Measure 1 is a market-based supply-side policy; Measure 2 is an interventionist supply-side policy
Measure 1 is a monetary policy; Measure 2 is a fiscal policy that does not affect aggregate supply
Measure 1 is an interventionist supply-side policy; Measure 2 is a monetary policy
