A supply-side policy is a policy that:
A)shifts the short-run aggregate supply curve.
B)shifts the long-run aggregate supply curve.
C)shifts the aggregated demand curve.
D)prevents recessionary gaps that shift the AS curve.

Question

Quizplus · Accepted Answer

Supply-side policies aim to increase the productive capacity of the economy, thus shifting the long-run aggregate supply curve to the right.

A Supply-Side Policy Is a Policy That