Economics 9708 · AS & A Level · Supply-side policy

Supply-side policy — practice question

Which policy is most likely to enable a developed economy to achieve all of its macroeconomic objectives?

  • Alowering interest rates to raise actual growth above potential growth
  • Bsupply-side reform to increase product and factor market flexibility
  • Ctax reform to make the system of taxation increasingly regressive
  • Dthe introduction of tariffs to protect domestic industry

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