Supply-side policies are an ineffective way to deal with inflation because:

Question

Quizplus · Accepted Answer

It is difficult to increase the growth rate in aggregate supply because it requires long-term investments in factors of production, such as capital and technology, which cannot be done quickly. Additionally, any increases in aggregate supply resulting from supply-side policies may only be temporary if not accompanied by demand-side policies to sustain the growth in the long run.

Supply-Side Policies Are an Ineffective Way to Deal with Inflation