Fiscal policy that focuses on shifting the long-run aggregate supply curve to the right is _____ policy.

Question

Quizplus · Accepted Answer

Supply-side fiscal policy aims to increase the long-run aggregate supply by promoting economic growth and production through measures such as tax cuts, subsidies, and deregulation. This type of policy is different from traditional demand-side fiscal policy, which focuses on shifting the aggregate demand curve.

Fiscal Policy That Focuses on Shifting the Long-Run Aggregate Supply