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Economics · May / June 2024 · Paper 12 · Question 20

2281Supply-side policy

Which statement about supply-side policy is correct?

  1. AIt aims to increase the productive potential of the economy.
  2. BIt aims to increase total demand in the economy.
  3. CIt involves changes in the equilibrium foreign exchange rate.
  4. DIt involves changes in the rate of interest.

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Correct answer: A. It aims to increase the productive potential of the economy.

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