A supply-side policy to cure stagflation would include
A)Reduced government spending.
B)Reduced government regulation.
C)The purchase of securities in the open market by the Fed.

Question

Quizplus · Accepted Answer

A supply-side policy to cure stagflation focuses on increasing the supply of goods and services in the economy, which in turn reduces inflation and provides economic growth. Reduced government regulation would encourage businesses to invest and expand production, increasing the supply of goods and services. Reduced government spending alone would not necessarily increase the supply of goods and services, and purchasing securities in the open market by the Fed is a monetary policy that focuses on increasing money supply, which may not address the supply-side issues causing stagflation.

A Supply-Side Policy to Cure Stagflation Would Include