Which of the following policies is a positive supply-side lever?

Question

Quizplus · Accepted Answer

Infrastructure development is a positive supply-side lever because it aims to increase the economy's productive capacity and potential output by improving the quality and efficiency of the resources used in production, such as transportation networks, communication systems, and energy infrastructure. This can lead to lower production costs, higher productivity, and increased competitiveness of businesses, which can stimulate economic growth and job creation. The other choices, cutting the discount rate (A), increasing government transfers (B), and increasing government regulation of industry (D), are demand-side policies that focus on stimulating consumer spending, reducing income inequality, and protecting consumers and the environment, respectively, and may have limited effects on supply-side factors.

Which of the Following Policies Is a Positive Supply-Side Lever