Which of the following can be both a supply-side and a fiscal policy tool during a recession?
A) Tax cuts.
B) Deregulation.
C) Job training programs.
D) Liberalized immigration laws.

Question

Quizplus · Accepted Answer

Tax cuts can have both supply-side and fiscal policy effects. A cut in taxes can encourage businesses to produce more goods and services, thus increasing aggregate supply, and it can also increase consumer spending, which would boost aggregate demand. Therefore, tax cuts can be a tool for both supply-side and fiscal policy during a recession.

Which of the Following Can Be Both a Supply-Side and a Fiscal