Which of the following would NOT be considered a supply-side approach to increasing growth?
A) improving the quality of human capital
B) investing in research and development
C) replacing obsolete plants with new ones
D) increasing transfer payments to retirees

Question

Which of the following would NOT be considered a supply-side approach to increasing growth?  
A) improving the quality of human capital 
B) investing in research and development 
C) replacing obsolete plants with new ones 
D) increasing transfer payments to retirees

Quizplus · Accepted Answer

Increasing transfer payments to retirees is not a supply-side approach to increasing growth. It is a demand-side approach as it aims to increase the purchasing power of retirees, which can boost consumer demand and stimulate economic growth. Supply-side approaches, on the other hand, aim to increase the quantity or quality of goods and services supplied in the economy, which can improve productivity and increase long-term growth. Options A, B, and C all involve supply-side approaches to improving growth by enhancing the quality of inputs (human capital), promoting innovation (research and development), and improving the efficiency of production (replacing obsolete plants with new ones).

Which of the Following Would NOT Be Considered a Supply-Side