Which of the following policies is a supply-side policy?
A) Reduction in taxes.
B) Reduction in regulation.
C) Reduction in resource prices.
D) Subsidies to produce technological advances.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the above policies are supply-side policies. Reduction in taxes and regulation decrease the cost of production, making it easier for businesses to produce goods and services. Reduction in resource prices, such as oil or labor, allows firms to produce goods more cheaply. Subsidies to produce technological advances increase the productivity of firms, which can lead to greater output and lower costs. All of these policies work to increase the supply of goods and services in the economy, hence they are all supply-side policies.

Which of the Following Policies Is a Supply-Side Policy