A supply-side policy to cure a recession might include
A)A decrease in government spending.
B)Elimination of the minimum wage.
C)A tax increase.

Question

Quizplus · Accepted Answer

Elimination of the minimum wage would reduce labor costs, making it more attractive to businesses to hire workers, therefore increasing employment levels and stimulating economic growth. Decreasing government spending or increasing taxes (which decrease consumer spending) are both demand-side policies and would likely have the opposite effect of exacerbating a recession.

A Supply-Side Policy to Cure a Recession Might Include