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

Supply-side policy — practice question

Supply-side policies may be used to reduce cost-push inflation. Which policy would be most effective in achieving this goal over the long run?

  • Aallowing trade unions to maintain work practices irrespective of productivity
  • Bencouraging workers to work extra hours for extra pay
  • Cincreasing total labour supply by employing more unskilled workers
  • Dsupporting the replacement of labour-manned machines by the use of robots

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