A supply- side policy that successfully tackles inflation will result in the aggregate supply curve shifting to the left.

Question

Quizplus · Accepted Answer

A supply-side policy that successfully tackles inflation typically aims to increase the productive capacity of the economy, which would shift the aggregate supply curve to the right, not to the left. Shifting to the right indicates an increase in supply, potentially lowering prices and thus helping to control inflation.

A Supply- Side Policy That Successfully Tackles Inflation Will Result