A supply side policy is designed to:
(a) Raise the level of demand in the economy.
(b) Lower the demand for domestic goods in an economy.
(c) Improve the ability of the economy to produce goods and services.
(d) None of the above.
Answer: (c) Improve the ability of the economy to produce goods and services.
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The table above gives a nation's production function. Which of the following is NOT an attainable combination of real GDP and labor?
A) real GDP of $4.0 trillion and labor of 90 billion hours per year B) real GDP of $4.7 trillion and labor of 110 billion hours per year C) real GDP of $4.0 trillion and labor of 70 billion hours per year D) real GDP of $5.2 trillion and labor of 90 billion hours per year E) real GDP of $5.5 trillion and labor of 150 billion hours per year
Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent
A) 7 B) 9 C) 13 D) 3
Abstract terms like "cost of living" and "price level" are meaningless to ordinary individuals
a. True b. False Indicate whether the statement is true or false
You observe that grocery shoppers choose the shortest line at the checkout. This is an example of _____
a. rational self-interest b. selfishness c. greed d. blind materialism e. altruism