Which of the following is a supply-side policy action to eliminate a recession?
A)Increased investment in infrastructure.
B)The purchase of securities in the open market by the Fed.
C)An increase in the marginal tax rate.

Question

Quizplus · Accepted Answer

Increased investment in infrastructure is a supply-side policy action that can help eliminate a recession. By investing in infrastructure, such as roads, bridges and airports, the government can create jobs and boost economic activity, which can lead to increased growth and higher levels of output. This can help stimulate demand and encourage businesses to invest and expand, thereby promoting long-term economic growth. The other options, such as the purchase of securities in the open market by the Fed and an increase in the marginal tax rate, are demand-side policies that can also help stimulate economic activity but may not directly address the underlying structural issues that caused the recession.

Which of the Following Is a Supply-Side Policy Action to Eliminate