Supply-side policies attempt to deal with inflation by:

Question

Quizplus · Accepted Answer

Supply-side policies aim to increase the economy's ability to produce goods and services. By increasing aggregate supply, the cost of production can decrease, leading to lower prices and decreasing inflationary pressures. Thus, option C is the correct answer. Options A and B suggest increasing or decreasing aggregate demand, which is not the goal of supply-side policies. Option D suggests decreasing aggregate supply, which would only worsen inflation.

Supply-Side Policies Attempt to Deal with Inflation By