Note AcademyNote Academy

Economics · Oct / Nov 2021 · Paper 13 · Question 20

2281Supply-side policy

Which statement relating to supply-side policies is correct?

  1. AThey aim to increase aggregate demand.
  2. BThey aim to increase the long-run capacity of the economy.
  3. CThey aim to reduce cyclical unemployment.
  4. DThey aim to work in the short term.

As printed in the paper

Show the answer

Correct answer: B. They aim to increase the long-run capacity of the economy.

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.