The government of Ruritania has implemented many programs that promote equality,but has become concerned about the very slow rate of growth that has plagued the national economy for many years.In order to address this problem,the government is likely to:
A)take control of more major industries.
B)reduce taxes and cut back on some social programs.
C)make sure to balance its budget.
D)avoid the use of fiscal policies and reduce the supply of money in circulation.

Question

Quizplus · Accepted Answer

Reducing taxes and cutting back on some social programs can stimulate economic growth by increasing disposable income and providing incentives for businesses to invest and expand. This approach is often referred to as supply-side economics, and has been advocated by many conservative politicians and economists. Conversely, increasing government control over industries or reducing the supply of money in circulation (through contractionary monetary policy) can stifle economic growth and be counterproductive. Balancing the budget is generally a good idea, but may not be sufficient to address the slow growth problem in Ruritania.

The Government of Ruritania Has Implemented Many Programs That Promote