Tools for supply-side policy include:
A) Changes in tax incentives.
B) Open-market operations.
C) Changes in government spending.
D) Changes in the discount rate.

Question

Quizplus · Accepted Answer

Changes in tax incentives are a direct way to influence supply-side policies by reducing the costs of production and encouraging businesses to invest and expand. This can lead to an increase in output and employment. Open-market operations, changes in government spending, and changes in the discount rate are all demand-side policies that focus on stimulating consumer spending and boosting aggregate demand.

Tools for Supply-Side Policy Include