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

Supply-side policy — practice question

What is likely to reduce a country’s actual output in the short run, yet raise the long-run growth rate of its potential output?

  • Aa decrease in the proportion of 18-25 year olds in higher education
  • Ba decrease in the size of the government’s budget deficit
  • Can increase in the size of the labour force
  • Dincreased female participation in the labour force

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