An advantage of demand-side fiscal policies is that they do not always require tradeoffs between price levels and output, while supply-side fiscal policies sometimes do.

Question

Quizplus · Accepted Answer

Demand-side fiscal policies often involve trade-offs between adjusting price levels (inflation) and output (GDP growth), as stimulating demand can lead to higher inflation. Supply-side policies focus on increasing productivity and potential output, which can enhance economic growth without necessarily causing inflation.

An Advantage of Demand-Side Fiscal Policies Is That They Do