According to supply-side advocates,the increase in government regulatory activity in the late 1960s slowed economic growth
A)by increasing the cost of producing a given output.
B)by requiring capital formation that contributes to increased productivity in terms of measured output.
C)only temporarily until there was an adequate adjustment period.
D)Both a and b

Question

Quizplus · Accepted Answer

Supply-side advocates argue that government regulations increase the cost of production due to compliance costs, leading to decreased profitability and ultimately slowing down economic growth. They do not see the regulation as a contributing factor to increased productivity in the long run, unlike demand-side advocates.

According to Supply-Side Advocates,the Increase in Government Regulatory Activity in the Late