Supply-side policies are designed to achieve a
A)Movement up the Phillips curve to a higher inflation rate.
B)Movement down the aggregate supply curve.
C)Lower inflation rate but a higher unemployment rate.
D)Lower inflation rate and a lower unemployment rate.

Question

Quizplus · Accepted Answer

Supply-side policies aim to increase the productive capacity of an economy, which can lead to a shift to the right of the aggregate supply curve. This can result in lower inflation and a lower unemployment rate, as there is an increase in the quantity and quality of goods and services produced, leading to an increase in employment opportunities.

Supply-Side Policies Are Designed to Achieve a