Supply-side policy includes:
A) An increase in the reserve requirement.
B) A decrease in spending on education.
C) An increase in government-mandated fringe benefits.
D) An increase in incentives for business investment.

Question

Quizplus · Accepted Answer

Supply-side policy focuses on promoting economic growth by increasing the production capacity of the economy. One way to do this is by providing incentives for businesses to invest in capital and expand production. Therefore, an increase in incentives for business investment aligns with supply-side policy. The other choices would not be considered supply-side policies as they do not directly promote production capacity.

Supply-Side Policy Includes