The rationale underlying policies to deregulate the economy is that these policies would
A) increase aggregate demand.
B) decrease short-run aggregate supply.
C) decrease aggregate demand.
D) increase short-run aggregate supply.

Question

Quizplus · Accepted Answer

Deregulation is aimed at removing barriers and restrictions that limit the ability of businesses to operate and compete in the market. This leads to increased efficiency and productivity, which increases short-run aggregate supply. It does not directly affect aggregate demand.

The Rationale Underlying Policies to Deregulate the Economy Is That