Which pairing of initial equilibrium and supply-side policy would be least likely to increase an economy’s real output?
- Ainitial equilibrium below full employment; supply-side policy: abolition of national minimum wage
- Binitial equilibrium below full employment; supply-side policy: extra spending on training
- Cinitial equilibrium full employment; supply-side policy: extra investment in infrastructure
- Dinitial equilibrium full employment; supply-side policy: reduction in the rate of income tax