Which of the following policies is a supply-side policy?
A) higher taxes
B) increase in regulation
C) increase in resource prices
D) subsidies to produce technological advances

Question

Quizplus · Accepted Answer

Subsidies to produce technological advances are examples of supply-side policies as they aim to increase the productivity and efficiency of the production process, leading to an increase in the supply of goods and services. Higher taxes and increase in regulation are demand-side policies as they aim to decrease consumption and demand. Increase in resource prices does not necessarily fall under either supply-side or demand-side policies as it can have mixed effects on both.

Which of the Following Policies Is a Supply-Side Policy