Quiz 13 Policy Application Policy Application You are on que

Quiz 13: Policy Application Policy Application You are on question 8 of 25 Choose ALL that apply A supply side policy to address a recession would likely O enact policies that stimulate aggregate supply rather than aggregate demand provide tax cuts rather than increased government spending Next >

Solution

B) Enact policies that stimulates aggregate supply rather than aggregate demand.

C) provide tax cuts rather than increased govt spending.

Option B will help in establishing the equilibrium in market and option C will help in encouragement of production through tax cuts and at the same time, it won\'t boost demand by not increasing government spending.

Option A won\'t be the answer because, increased unemployment benefit will discourage labour force to work, dragging the economy backwards.