Supply-side fiscal policies have the disadvantage of setting up a tradeoff between low inflation and low unemployment rates.

Question

Quizplus · Accepted Answer

This statement is incorrect. Supply-side fiscal policies are designed to increase productivity and economic growth, which can lead to lower unemployment rates and lower inflation rates simultaneously. Therefore, there is no necessary tradeoff between these two goals.

Supply-Side Fiscal Policies Have the Disadvantage of Setting Up a Tradeoff